On October 1, 2020, Philly Company purchased inventory from a German supplier for 80,000 Euros due...

On October 1, 2020, Philly Company purchased inventory from a German supplier for 80,000 Euros due on January 31, 2021.
Simultaneously, Philly entered into a forward contract for 80,000 Euros for delivery on January 31, 2020.
Payment was made to the foreign supplier on 1/31/2021.
Spot rates on October 1, December 31, and January 31, were $1.62, $1.51, and $1.45, respectively.
Forward rates on October 1 and December 31 were $1.33 and $1.39 respectively.

Required: Prepare all journal entries related to the above transactions on October 1, 2020, December 31, 2020, and January 31, 2021.

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