On December 1, 2015, Dresden Company (a U.S. company located in Albany, New York) purchases inventory from a foreign supplier for 60,000 local currency units (LCU). Dresden will pay in 90 days after it sells this merchandise. It makes sales rather quickly and pays this entire obligation on January 28, 2016. Currency exchange rates for 1 LCU are as follows:
December 1, 2015 .........$0.88
December 31, 2015 .........0.82
January 28, 2016 ..........0.90
Prepare all journal entries for Dresden Company in connection with the purchase and payment.