Wild West,Incorporated (a U.S.corporation)sold inventory to a company in the Philippines for 1,600,000 pesos on account on February 1,2011,with payment expected in 90 days.Wild West entered into a forward contract to hedge this transaction,and properly accounts for the transaction as a cash flow hedge.Wild West has a March 31 fiscal year end,and uses an 8% discount rate,resulting in a 30-day present value factor of .9934.The forward contract is settled net.The relevant exchange rates are shown below:
Required:
Record the journal entries needed by Wild West on February 1,March 31,and May 2.Round all entries to the nearest whole dollar.

Question

Wild West,Incorporated (a U.S.corporation)sold inventory to a company in the Philippines for 1,600,000 pesos on account on February 1,2011,with payment expected in 90 days.Wild West entered into a forward contract to hedge this transaction,and properly accounts for the transaction as a cash flow hedge.Wild West has a March 31 fiscal year end,and uses an 8% discount rate,resulting in a 30-day present value factor of .9934.The forward contract is settled net.The relevant exchange rates are shown below:
  Required:
Record the journal entries needed by Wild West on February 1,March 31,and May 2.Round all entries to the nearest whole dollar.

Quizplus · Accepted Answer

The Answer of Wild West,Incorporated (a U.S.corporation)sold inventory to a company in the Philippines for 1,600,000 pesos on account on February 1,2011,with payment expected in 90 days.Wild West entered into a forward contract to hedge this transaction,and properly accounts for the transaction as a cash flow hedge.Wild West has a March 31 fiscal year end,and uses an 8% discount rate,resulting in a 30-day present value factor of .9934.The forward contract is settled net.The relevant exchange rates are shown below:
  Required:
Record the journal entries needed by Wild West on February 1,March 31,and May 2.Round all entries to the nearest whole dollar.

Wild West,Incorporated (A U