ABM Inc., a US firm imports equipment from Germany on March 1 for 200,000 euros when the exchange rate is $1.3112 per euro. Payment in euro will be on April 30. The firm's books are closed at the end of the calendar quarter (on March 31).

1-ABM, Inc.records the purchase on March 1, as follows:

2-Assume that on March 31, the exchange rate is $1.35. ABM, Inc.should make the following journal entry:

3-Assume that on April 30 the exchange rate is $1.33. ABM, Inc.should make the following journal entry: