1. On November 1, 20X6, Merchant sold goods to a company located in Munich, Germany. The receivable was to be settled in European euros on February 1, 20X7, with the receipt of 270,000 by Merchant Company. 2. On November 1, 20X6, Merchant purchased machine parts from a company located in Berlin, Germany. Merchant is to pay 135,000 on February 1, 20x7. The direct exchange rates are as follows: November 1, 20x6 December 31, 20X6 February 1, 20x7 1 = $ 0.60 1 - $ 0.62 1 = $ 0.58 Required: Record the T-accounts for the following transactions (Record the transactions in the given order.) 1. The November 1, 20X6, export transaction (sale). 2. The November 1, 20X6, import transaction (purchase). 3. The December 31, 20X6, year-end adjustment required of the foreign currency-denominated receivable of 270,000. 4. The December 31, 20X6, year-end adjustment required of the foreign currency-denominated payable of 135,000. 5. The February 1, 20x7, adjusting entry to determine the U.S. dollar-equivalent value of the foreign currency receivable on that date. 6. The February 1, 20X7, adjusting entry to determine the U.S. dollar-equivalent value of the foreign currency payable on that date. 7. The February 1, 20X7, settlement of the foreign currency receivable. 8. The February 1, 20X7, settlement of the foreign currency payable. Answer is not complete. Accounts Receivable () 270,000 2/1/X7 Foreign Currency Units (6) 270,000 135,000 X 135,000 2/1/X7 11/1/X6 12/31/X6 270,000 Bal. 2/2/X7 0 Bal. 12/31/X6 0 270,000 2/1/X7 0 270,000 Bal. 2/2/X7 0 Bal. 2/1/X7 0 2/1/X7 Bal. 2/2/X7 0 Bal. 2/2/X7 0 Accounts Payable () 135,000 X 12/31/X6 Foreign Currency Transaction Loss 14,516 12/31/X6 2/1/X7 135,000 14,516 0 Bal. 2/2/X7 0 Bal. 12/31/X6 2/1/X7 135,000 15,017 135,000 15,017 0 Bal. 2/2/X7 0 Bal. 2/1/X7 2/1/X7 Accounts Payable (6) 135,000 Foreign Currency Transaction Loss 14,516 12/31/X6 12/31/X6 2/1/X7 135,000 14,516 0 Bal. 2/2/X7 0 Bal 12/31/X6 2/1/X7 135,000 15,017 135,000 15,017 Bal. 2/1/X7 0 Bal. 2/2/X7 + 0 2/1/X7 O Bal. 2/2/X7 0 Bal. 2/2/X7 00 Foreign Currency Transaction Gain 7,258 12/31/X6 2/1/X7 7,258 Bal. 2/2/X7 0 30,033 30,033 Bal. 2/2/X7 0 Bal. 2/2/X7 0