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on September 15, for 106, 000 crowns. It received 15. The following exchange rates for 1 crown appl

on September 15, for 106, 000 crowns. It received 15. The following exchange rates for 1 crown appl

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Peerless Corporation (a U.S. - based 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: Date U.S. Dollar per Crown September 15 $ 0.60 September 30 0.66 October 15 0.62 Prepare all journal entries for Peerless Corporation in connection with this export sale, assuming that the company closes its books on September 30 to prepare interim financial statements. Please answer the A, B, C, and D. A. Record the entry for sales on credit. (09/15) B. Record the entry for changes in the exchange rate. (09/30) C. Record the entry for changes in the exchange rate. (10/15) D. Record the entry for receipt of payment. (10/15)
Transcribed Image Text:Peerless Corporation (a U.S. - based 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: Date U.S. Dollar per Crown September 15 $ 0.60 September 30 0.66 October 15 0.62 Prepare all journal entries for Peerless Corporation in connection with this export sale, assuming that the company closes its books on September 30 to prepare interim financial statements. Please answer the A, B, C, and D. A. Record the entry for sales on credit. (09/15) B. Record the entry for changes in the exchange rate. (09/30) C. Record the entry for changes in the exchange rate. (10/15) D. Record the entry for receipt of payment. (10/15)
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