Question

"Peerless Corporation (a U.S. company) made a sale to a foreign customer on September 15, for 106,000 crowns. It received payment on October 15. The following exchange rates for 1 crown apply: Prepare all journal entries for Peerless in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements. (If no entry is required for a transaction/event, select "" No journal entry required"" in the first account field.) 4 journal entries"

Answer 1

Question. The exchange rate was not added to your question. Below is the exchange rate used to answer this question.

September 15 $ 0.60

September 30 $0.66

October 15 $0.62

Answer: See the explanation for the prepared journal entry.

Step-by-step explanation:

Date Account title/Explanation Debit Credit

Sept 15 Account receivable (106,000*0.6) 63600

Sales 63600

(To record the sales)

Sept 30 Account receivable(106,000*(0.66-0.6) 6360

Foreign exchange gain 6360

[ To record the adjustment of forex gain/loss]

Oct. 15 Foreign exchange gain/loss

(106000*(0.66-0.62) 4240

Account receivable 4240

[ To record the entry for changes

in the exchange rate]

Oct 15 Cash (106,000*0.62) 65720

account receivable 65720

[ To record the entry for receipt of payment]

Note; No journal entry require for 3rd entry.