First, you close out your asset and liability accounts. Determine the present value using an appropriate interest rate — not less than the rate stated in the sales contract.Question: In midFebruary, Texas Boots a US based company sells boots to a German firm for a e250,000 receivable in the middle of March. Accounts receivable are any balances owed to the University of Texas at Dallas (University) from unaffiliated, external organizations or individuals. In a forward contract, the buyer takes a long position to buy a certain amount of foreign currency at a specified future date. USA Corp would record the following entries when the forecasted sales occur and forward contract matures on March 31, 20X2. Dr. Forward contract receivable. A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date. I'll go through an example of how to record a forward contract on a balance sheet from both the sellers perspective in the buyers perspective. Contract Development.