Required information On October 1, 2018, Jarvis Co. sold inventory to a customer in a foreign country, denominated in 100,000 local currency units (LCU). Collection is expected in four months. On October 1, 2018, a forward exchange contract was acquired whereby Jarvis Co. was to pay 100,000 LCU in four months (on February 1, 2019) and receive $78,000 in U.S. dollars. The spot and forward rates for the LCU were as follows Date Rate Desicription EXchange Rate $.83 1 LCU $.85 1 LCU $.80 1 LcU $.86 1 LCU October 1, 2018 December 31, 2018 Spot rate: Spot rate: 1-Month Forward Rate Spot rate: February 1, 2019 The company's borrowing rate is 12 %. The present value factor for one month is .9901 Any discount or premium on the contract is amortized using the straight-line method. Assuming this is a fair value hedge; prepare journal entries for this sales transaction and forward contract