Domestic Corp., a Canadian company, sells its products to customers in the United Kingdom at prices quoted in pounds sterling. On November 14, 2004, Domestic sold and shipped goods that had cost $160,000 to produce to an English company for £200,000. On December 20, Domestic received an international draft for part of the amount due, £80,000. At year-end (December 31), the remaining £120,000 was unpaid.

On February 12, 2005, Domestic received payment of the remaining £120,000.

Required:
In general journal form, prepare journal entries to record the above events, and any adjustments necessary at year-end. Exchange rates (Canadian-dollar equivalent to £1) are as follows:

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November 14 December 20 December 31 February 12 $1.80 $1.85 $1.87 $1.84