Question: Please help A U.S. company estimated that, in the first two months of 2026, its export sales to a Swiss companywould generate 364,000francs. On December

Please help

A U.S. company estimated that, in the first two months of 2026, its export sales to a Swiss companywould generate 364,000francs. On December 1, 2025, in an effort to protect against the weakening franc, the company purchased an option (out of the money) to sell 364,000 Swiss francs at an exchange rate of $0.60 with an expiration date of February 25, 2026. The cost of the option was $5,800. The spot rates on the following dates were: December 1, 2025 December 31, 2025 February 25, 2026 $0.62 $0.60 $0.57 The option's value in the options market on December 31, 2025, was $8,800. December 31 is also an interim reporting date. The option was exercised on February 25, 2025. Prepare all journal entries needed on December 1, December 31, and February 25 to account for the option. (Cteditawnttitlesareautomatjcaltyir&tedwhen theamountisentered. Ifnoen&yisrequiredsekct Listalldebit entri More credit entries) Account Titles and Explanation (To adjust the option value to its current realizable value) (To exercise the option and settle with the trader) Debit Credit SUPPORI

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