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In: AccountingOn November 1, 2017, Bernard Company (a U.S.-based company) soldmerchandise to a foreign customer for...On November 1, 2017, Bernard Company (a U.S.-based company) soldmerchandise to a foreign customer for 230,000 FCUs with payment tobe received on April 30, 2018. At the date of sale, Bernard enteredinto a six-month forward contract to sell 230,000 FCUs. The companyproperly designates the forward contract as a cash flow hedge of aforeign currency receivable. The following exchange ratesapply:DateSpot RateForward Rate(to April 30, 2018)November 1, 2017$0.34$0.33December 31, 20170.320.30April 30, 20180.31N/ABernard's incremental borrowing rate is 12 percent. The presentvalue factor for four months at an annual interest rate of 12percent (1 percent per month) is 0.9610.1.Prepare all journal entries, including December 31 adjustingentries, to record the sale and forward contract.2.What is the impact on net income in 2017?3.What is the impact on net income in 2018?