The journal entry on 11/01/20 TO RECORD ENTRY INTO THE FORWARD CONTRACT would include:A DEBIT TO FC RECEIVABLE FROM EX BROKER (€) AND A CREDIT TO US DOLLARS PAYABLE TO FXBROKER IN THE AMOUNT OF: On November 1, 2020, Americo, Corporation purchased wine on credit from Venezia Company for €800,000.Payment is not due for 120 days. Thus, the transaction will be settled on February 28, 2021. On November 1, 2020,Americo, Corporation also entered a 120-day forward contract to purchase €800,000. The forward contract is notdesignated as a hedge. The direct exchange rates were as follows:SPOTFORWARD11/1/2020 $ 1.22 $12/31/20202/28/2021 $ 1.191.24 (120 days)1.17 (60 days)1.18 $

International trade is the exchange of goods and services outside the geographical boundaries of the…

Answered: The journal entry on 11/01/20 TO RECORD…

The journal entry on 11/01/20 TO RECORD ENTRY INTO THE FORWARD CONTRACT would include: A DEBIT TO FC RECEIVABLE FROM EX BROKER (€) AND A CREDIT TO US DOLLARS PAYABLE TO FX BROKER IN THE AMOUNT OF:

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Question

The journal entry on 11/01/20 TO RECORD ENTRY INTO THE FORWARD CONTRACT would include:
A DEBIT TO FC RECEIVABLE FROM EX BROKER (€) AND A CREDIT TO US DOLLARS PAYABLE TO FX
BROKER IN THE AMOUNT OF:

On November 1, 2020, Americo, Corporation purchased wine on credit from Venezia Company for €800,000.
Payment is not due for 120 days. Thus, the transaction will be settled on February 28, 2021. On November 1, 2020,
Americo, Corporation also entered a 120-day forward contract to purchase €800,000. The forward contract is not
designated as a hedge. The direct exchange rates were as follows:
SPOT
FORWARD
11/1/2020 $ 1.22 $
12/31/2020
2/28/2021 $ 1.19
1.24 (120 days)
1.17 (60 days)
1.18 $

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