Harris Inc. had the following transactions:

1. On May I, Harris Inc. purchased parts from a Japanese company for a U.S. dollar equivalent value of \(\$ 8,400\), to be paid on June 20 . The exchange rates were:

2. On July 1, Harris Inc. sold products to a French customer for a U.S. dollar equivalent of \(\$ 10,000\), to be received on August 10. The exchange rates were:

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a. Assume the two transactions are denominated in U.S. dollars. Prepare the entries required for the dates of the transactions and their settlement in U.S. dollars.

b. Assume the two transactions are denominated in the applicable local currency units of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the local currency units of the Japanese company (yen) and the French customer (franc).

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May 1 June 20 1 yen = $.0070 1 yen = .0075