On November $1,2020,$ Cheng Company $($a U$.$S$.-$based company$)$ forecasts the purchase of goods from a foreign supplier for $130,000$ yuan. Cheng expects to receive the goods on April $30,2021,$ and make immediate payment. On November $1,2020,$ Cheng enters into a six$-$month forward contract to buy $130,000$ yuan. The company properly designates the forward contract as a cash flow hedge of a forecasted foreign currency transaction. Forward points are excluded in assessing hedge effectiveness and are amortized to net income using a straight$-$line method on a monthly basis over the life of the contract. The following U$.$S$.$ dollar$$Yuan exchange rates apply: Date Spot Rate Forward Rate $($to April $30,2021)$ November $1,2020$ $ $0\mathrm{.}24$ $ $0\mathrm{.}225$ December $31,20200\mathrm{.}230\mathrm{.}200$ April $30,20210\mathrm{.}21$ N$/$A As expected, Cheng receives goods from the foreign supplier on April $30,2021,$ and pays $130,000$ yuan immediately. Cheng sells the imported goods in the local market in May $2021.$ Prepare all journal entries, inclu