Question
8. Assume that your company purchases inventories from a supplier on December 15. The invoice specifies that payment is to be made on March 15
8. Assume that your company purchases inventories from a supplier on December 15. The invoice specifies that payment is to be made on March 15 in Euros in the amount of 10,000 Euros. Your company operates on a calendar year basis. Assume the following exchange rates and the company does not enter into any hedging arrangements:
| December 15 | $1.35 :1 Euro |
| December 31 | $1.37 :1 Euro |
| March 15 | $1.38 :1 Euro |
Requirement: Prepare the journal entry that needs to be made on March 15
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
