Jackson Ltd Has a US$50 000 Receivable Due at the End

Jackson Ltd has a US$50 000 receivable due at the end of March 2014 for the sale of a specialised piece of hydraulic equipment.The sale was made on 1 February 2014 and the equipment cost Jackson Ltd $560 000 to manufacture.In order to hedge the receivable,Jackson Ltd enters into a futures contract on that date to sell five US dollar futures contracts.Each contract is for an amount of US$100 000 and the market rate for each futures contract is A$1 = US$0.6778 on 1 February.Jackson pays a deposit of $25 000 on the contracts.The futures contracts are settled on 31 March 2014,when the debtor pays off the receivable.The spot exchange rates during the period were: $$\begin{array} { | l | l | } \hline 1 \text { February } 2014 & \text { A\$1 } = \text { US\$0.7020 } \\\hline 31 \text { March } 2014 & \text { A\$1 } = \text { USS\$.7350 } \\\hline\end{array}$$ The market rate for the futures contracts is A$1 = US$0.7150 on 31 March 2014.What are the entries to record the sale,futures contracts,receipt of payment and the settling of the futures contracts (rounded to the nearest dollar) ?

A)

B)

C)

D)