Leigh of New York sells its products to customers in the United States and the United Kingdom. On December 16, 2019, Leigh sold merchandise on credit to Bronson Ltd. of London at a price of 17,000 pounds. The exchange rate on that day for £1 was $1.4583. On December 31, 2019, when Leigh prepared its financial statements, the rate was £1 for $1.4382. Bronson paid its bill in full on January 15, 2020, at which time the exchange rate was £1 for $1.4482. Leigh immediately exchanged the 17,000 pounds for U.S. dollars. Prepare Leigh’s journal entries on December 16, December 31, and January 15 (round to the nearest dollar).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Leigh of New York sells its products to customers in the United States and the United Kingdom. On
December 16, 2019, Leigh sold merchandise on credit to Bronson Ltd. of London at a price of 17,000
pounds. The exchange rate on that day for £1 was $1.4583. On December 31, 2019, when Leigh prepared
its financial statements, the rate was £1 for $1.4382. Bronson paid its bill in full on January 15, 2020, at
which time the exchange rate was £1 for $1.4482. Leigh immediately exchanged the 17,000 pounds for
U.S. dollars. Prepare Leigh’s journal entries on December 16, December 31, and January 15 (round to the
nearest dollar).

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