Save Ac Astrotuff Company is negotiating the purchase nylon for 150,000 pounds from Tangsun Company, a British firm, and signs a firm purchase commitment on November 1, 2020. That same day, Astrotuff entered into a 90-day forward contract to hedge the planned purchase. The forward contract is to purchase 150.000 pounds at $1.45 per pound (forward rate at November 1, 2020). On November 1, 2020, the spot price of nylon is $1.40 per pound, but Astrotuff anticipates significant increases in the price of the British pound. On December 31, 2020, Astrotuff's year end, the forward rate to January 30, 2021 is $1.42 per pound. The spot and forward rates on January 30, 2021 are $1.40 per pound. Astrotuff purchases the nylon on January 30 and settles the forward contract. Required: Prepare the necessary journal entries to account for this fair value hedge of the firm purchase commitment and the related purchase of nylon Astrotuff Company is negotiating the purchase nylon for 150,000 pounds from Tangsun Company, a British firm, and signs a firm purchase commitment on November 1, 2020. That same day, Astrotuff entered into a 90-day forward contract to hedge the planned purchase. The forward contract is to purchase 150,000 pounds at $1.45 per pound (forward rate at November 1, 2020). On November 1, 2020, the spot price of nylon is $1.40 per pound, but Astrotuff anticipates significant increases in the price of the British pound. On December 31, 2020, Astrotuff's year end, the forward rate to January 30, 2021 is $1.42 per pound. The spot and forward rates on January 30, 2021 are $1.40 per pound. Astrotuff purchases the nylon on January 30 and settles the forward contract. Required: Prepare the necessary journal entries to account for this fair value hedge of the firm purchase commitment and the related purchase of nylon.