Problem 1 (7 points): On Oct 1,2023, Jarvis Co. bought inventory from a customer in a foreign months. On October 1, 2023, a forward exchange contract was acquired whereby Jarvis Co. was country, denominated in 100,000 local currency units (LCU). Payment is expected in four to purchase 100,000 LCU in four months (on February 1, 2024) and pay $83,000 in U.S. dollars. The spot and forward rates for the LCU were as follows: Date spot rate Oct 1,2023 $.82 Dec 31, 2023 $.85 Feb 1,2024 $.86 forward rate(to Feb 1, 2024) 0.83 0.84 0.86 Assuming this is a cash flow hedge; prepare journal entries for this sales transaction and forward contract. Spot rate AP Change in AP Fwd rate (02/01/2024) FV of Fwd contract Change in FV of Fwd Oct 1,2023 Dec 31, 2023 Feb 1,2024 1-Oct-23 $0.82 31-Dec-23 $0.85 1-Feb-24 $0.86 N/A $0.83 $0.84 $0.86 N/A