• December 1, 2020, Naser Inc., a Kuwaiti company, makes a sale of 100,000 Kuwaiti Dinar (KD) and ships goods to Safar, SA, a Jordanian customer, who agrees to pay 250,000 Jordanian Dinar (JD) on March 2, 2021. On December 1, 2020, Naser Inc. enters a foreign currency forward contract On March 2, 2021, the contract calls for Naser Inc. to sell 250,000 JD at a forward rate of 0.39 KD while the forward rate on December 31, 2020 for March 2, 2021 delivery is 0.378. Note that (a) the annual interest rate is 6% (0.5% per month) and (b) the spot rates per JD are:

Compute Foreign exchange gain or loss on December 31, 2020. (2 mark) Compute Foreign exchange gain or loss on March 2, 2021.

Make the journal entries of December 1, 2020, December 31, 2020 and March 2, 2021

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