On March $1,$ Derby Corporation $($a U$.$S$.-$based company$)$ expects to order merchandise from a supplier in Norway in three months. On March $1,$ when the spot rate is $$0\mathrm{.}28$ per Norwegian krone, Derby enters into a forward contract to purchase $617,500$ Norwegian kroner at a three$-$month forward rate of $$0\mathrm{.}29.$

Forward points are excluded in assessing the forward contract's effectiveness as a hedge, and are amortized to net income on a straight$-$line basis. At the end of three months, when the spot rate is $$0\mathrm{.}286$ per Norwegian krone, Derby orders and receives the merchandise, paying $617,500$ kroner. The merchandise is sold within $30$ days.

Required:

a$-1.$ Prepare all journal entries for Derby Corporation related to this transaction and hedge.

a$-2.$ What amount should Derby Corporation report in the current year's net income as cost of goods sold?

b$.$ What amount should Derby Corporation report in the current year's net income as foreign exchange gain or loss?

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Req A$1$

Prepare all journal entries for Derby Corporation related to this

Note: If no entry is required for a transaction$/$event$,$ select $"$No in the first account field.

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$\backslash$table$[[,$No$,$Date,General Journal,Debit$],[$

$u,1,\frac{03}{01},$No Journal Entry Required,$],[,2,\frac{05}{31},$Other Comprehensive Income $($OCI$),],[,,$Forward Contract,$],[$i$,3,\frac{05}{31},$Cost of Goods Sold,$],[,,$Other Comprehensive Income $($OCI$),],[{}^{},4,\frac{05}{31},$Foreign Currency $($NOK$),],[,,$Forward Contract,$],[,,$Cash,$],[,5,\frac{05}{31},$Inventory,$],[,,$Foreign Currency $($NOK$),],[$@$,6,\frac{05}{31},$Cost of Goods Sold,$],[,,$Inventory,$],[$@${?}^{},7,\frac{05}{31},$Accumulated Other Comprehensive Income $($AOCI$),],[,,$Cost of Goods Sold,$]]$