At the end of the fiscal year, December 31, 2004, Export Ltd. finds itself with two accounts

Question:

At the end of the fiscal year, December 31, 2004, Export Ltd. finds itself with two accounts receivable in pesos:

1. From a sale on July 1, 2004, and due to be collected on December 1, 2005, for 2,000,000 pesos.

2. From a sale on September 1, 2004, and due to be collected on December 1, 2007, for 4,000,000 pesos.

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Required:
Prepare the journal entries for December 31, 2004, and December 1 and December 31, 2005, assuming that the foreign exchange risk is not hedged.

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