Tinitoys, Inc., a domestic company, purchased inventory from a Brazilian company for 500,000 Brazilian reals (Br. reals) on May 1, 20X2. Payment is due on June 30, 20X2. On May 1, 20X2, Tinitoys also entered into a 60-day forward contract to purchase 500,000 Brazilian reals. The forward contract is not designated as a hedge. Tinitoys' fiscal year ends on May 31. The direct exchange rates were as follows:

	Spot Rate	Forward Rate
May 1, 20X2	$0.523	$0.525 (60 days)
May 31, 20X2	$0.516	$0.52 (30 days)
June 30, 20X2	$0.508

Required information

Based on the preceding information, the entries on June 30, 20X2, include a

a. debit to Dollars Payable to Exchange Broker, $262,500.

b. credit to Cash, $254,000.

c. credit to Premium on Forward Contract, $6,000.

d. credit to Foreign Currency Receivable from Exchange Broker, $262,500.