On November $1,2023,$ Cheng Company $($a U$.$S$.-$based company$)$ forecasts the purchase of goods from a foreign supplier for $330,000$ yuan. Cheng expects to receive the goods on April $30,2024,$ and make immediate payment. On November $1,2023,$ Cheng enters into a six$-$month forward contract to buy $330,000$ 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 $30,2024)$

November $1,2023$ $$0\mathrm{.}44$ $$0\mathrm{.}425$

December $31,2023$ $$0\mathrm{.}43$ $$0\mathrm{.}400$

April $30,2024$ $$0\mathrm{.}41$ N$/$A

As expected, Cheng receives goods from the foreign supplier on April $30,2024,$ and pays $330,000$ yuan immediately. Cheng sells the imported goods in the local market in May $2024.$

Required:

A$.$ Prepare all journal entries, including December $31$ adjusting entries, to record the foreign currency forward contract and import purchase. Journal entries are as follows:

A$1)$ Record the forecasted sale and the six$-$month forward contract to buy $330,000$ yuan.

A$2)$ Record the forward contract at its fair value as an asset or liability.

A$3)$ Record the entry to amortize the forward contract premium or discount.

A$4)$ Record the entry to adjust the forward contract asset or liability to its fair value.

A$5)$ Record the entry to amortize the forward contract premium or discount.

A$6)$ Record the settlement of the forward contract and close the forward contract asset or liability account.

A$7)$ Record the purchase of inventory.

A$8)$ Record the entry to transfer the cost of inventory to cost of goods sold.

A$9)$ Record the entry to close accumulated other comprehensive income.

B$.$ What is the impact on net income in $2023?$

C$.$ What is the impact on net income in $2024?$