On June 20, 2000, Livingstone Company, a U.S. company, sold merchandise on credit to Schloss Company, a Swiss company, for 25,000 francs. The Livingstone Company received payment for the merchandise on July 10, 2000. The exchange rates on June 20 and July 10 were $0.70 and $0.67, respectively.

Required: (1) Prepare T-account entries for Livingstone to record the sale and collection.

(2) Prepare the July 10 T-account entry for Livingstone to record the collection if, instead, the exchange rate was $0.72 on this date. TYK-1