QUESTION 1 In August, a US company with a December 31 year-end enters a forward contract that locks in the purchase price of won for delivery on September 15 The forward contract hedges a firm commitment to buy merchandise from a supplier in Korea, with payment denominated in won The purchase is made on September 2and payment is made on September 15 The US company sells the merchandise in October Where is the value of the firm commitment to purchase reported in the year-end financial statements for the year? a. increase or decrease in other comprehensive income Ob. adjustment to sales revenue OC adjustment to cost of goods sold Od asset or liability on the balance sheet