Account Title (Debit) & (Credit) options

Cash, account receivables, account payables, Foreign exchange gain, foreign exchange loss, transaction adjustment, remeasurement loss, remeasurement gain, sales, cost of good sold.

Question 3 On December 1 of 2017, APU, a U.S. company, makes a sale to a Spanish customer. Sales price is 1.600.000 euro, and the spot rate is $1.40 per euro. APU allows the customer 3 months to pay. On December 31 of 2017, APU does closing, and the spot rate is $1.43 per euro. On March 1 of 2018, APU collects the sales amount with spot rate $1.44 per euro. Prepare the journal entries below. Date of Sale Account Title (Debit) Amount (Debit) USD Account Title (Credit) undisclosed Amount (Credit) USD undisclosed undisclosed 2240000 Date of Closing Account Title (Debit) Amount (Debit) USD Account Title (Credit) Amount (Credit) USD undisclosed 2288000 Account Receivables Sales Account Title (Credit) Amount (Credit) USD Date of Collection Account Title Amount (Debit) USD (Debit) Cash 2304000 Account Receivables