Use of futures contract to hedge a recievable denominated in a foreign currency

d. Reclassification of Oler comp In May, our company sells $675,000 of inventory to a customer in France. The been over-sold and is likely to rebound during the next 90 days, thus lowering the Stis that the ss e a loergil curPency 43. Use of futures contracts to hedge a receivable denominated iOP invoice is written for 500,000, and payment is due in 90 days. Our company feels theording receivable. The current futures price for 90-day delivery of $1.30 reflects our view. Sine valet days. When the receivable is collected in 90 days, the exchange rate at that date is $1.27 the invoice be stated in Euros (6), The exchange rate on the date of sale is $1.35:1dean lowering the SUS equivalen of flects our view. Since we feel th e SUS is likely to strengthen even more, we purchase a forward contract to sell Assume the following data relating to the spot and forward rates for the SUS vis--vis the Spot Rate Forward Rate $1.30:1 $1.28:1 July. $1.27:1 n/a Prepare the journal entries to record the following: a. Account receivable and sale (ignore cost of goods sold) b. Adjusting entries on June 30 c. Collection of the account receivable in July