On 10/17/2017, A U.S. company (which has a 12/31 year-end) took delivery from a Canadian firm of inventory costing C$500,000. Payment is due in 90 days. Concurrently the company entered into a forward contract to buy C$500,000 in 90 days at 1 CS $1.05. Direct exchange rates for CS on the respective dates are as follows: 

Required: 

Prepare all entries related to this transaction, assuming that the payment was made on 1/15/2018

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Forward Rate Date Spot Rate (Delivery on 1/15/2018) 10/17/2017 1.04 1.05 12/31/2017 1.08 1.07 1/15/2018 1.01 Forward Rate Date Spot Rate (Delivery on 1/15/2018) 10/17/2017 1.04 1.05 12/31/2017 1.08 1.07 1/15/2018 1.01