Peerless Corporation (a U.S. company) made a sale to a foreign customer on Septe

Question

Peerless Corporation (a U.S. company) made a sale to a foreign customer on September 15, for 113,000 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.)

1. Record the entry for sales on credit.

2. Record the entry for changes in the exchange rate.

3. Record the entry for changes in the exchange rate.

4. Record the entry for receipt of payment.

September 15 $ 0.61 September 30 0.65 October 15 0.60

Explanation / Answer

1.

2.

3.

4.

Date Particulars Debit Credit Sept. 15 Accounts receivable (113,000 * 0.61) 68,930 Sales 68,930

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