Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 119,000 pesos on credit. May 1 Sold 60 percent of the inventory for 99,000 pesos on credit. August 1 Collected 79,500 pesos from customers. September 1 Paid 69,500 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date U.S. Dollar per Peso March 1 $ 0.17 May 1 0.18 August 1 0.19 September 1 0.20 December 31 0.21 Assume that all receipts were converted into dollars as soon as they were received. Voltac will report each of the following accounts on its 2020 financial statements. Inventory $8,092 Cost of goods sold $12,138 Sales $17,820 Accounts receivable $4,095 Accounts payable $10,395 Cash $1,205 What are the corresponding journal entries?
Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 119,000 pesos on credit. May 1 Sold 60 percent of the inventory for 99,000 pesos on credit. August 1 Collected 79,500 pesos from customers. September 1 Paid 69,500 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date U.S. Dollar per Peso March 1 $ 0.17 May 1 0.18 August 1 0.19 September 1 0.20 December 31 0.21 Assume that all receipts were converted into dollars as soon as they were received. Voltac will report each of the following accounts on its 2020 financial statements. Inventory $8,092 Cost of goods sold $12,138 Sales $17,820 Accounts receivable $4,095 Accounts payable $10,395 Cash $1,205 What are the corresponding journal entries?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020:
| March 1 | Bought inventory costing 119,000 pesos on credit. |
| May 1 | Sold 60 percent of the inventory for 99,000 pesos on credit. |
| August 1 | Collected 79,500 pesos from customers. |
| September 1 | Paid 69,500 pesos to suppliers. |
Currency exchange rates for 1 peso for 2020 are as follows:
| Date | U.S. Dollar per Peso | ||
| March 1 | $ | 0.17 | |
| May 1 | 0.18 | ||
| August 1 | 0.19 | ||
| September 1 | 0.20 | ||
| December 31 | 0.21 | ||
Assume that all receipts were converted into dollars as soon as they were received.
Voltac will report each of the following accounts on its 2020 financial statements.
Inventory $8,092
Cost of goods sold $12,138
Sales $17,820
Accounts payable $10,395
Cash $1,205
What are the corresponding
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