Garden Grove Corporation made a sale to a foreign customer on September 15, Year 1, for 100,000 foreign currency units (FCU). Payment was received on October 15, Year 1. The following exchange rates apply:
Date U.S. Dollar per FCU
September 15, Year 1 ……………………… $0.40
September 30, Year 1 ……………………… 0.42
October 15, Year 1 ………………………… 0.37
Required:
Prepare all journal entries for Garden Grove Corporation in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements.