Adjusting Entry at Balance Sheet Date

Yum! Brands, Inc. has the following receivables and payables denominated in foreign currencies, prior to closing on December 31. The spot rates at December 31 are also given.

Item	Current $ balance		FC balance		December 31 spot rate
1. Receivable	$65,000		1,000,000 Mexican pesos		$0.06
2. Receivable	165,000		225,000 Canadian dollars		0.75
3. Payable	556,000		400,000 Jordan dinar		1.41
4. Payable	56,000		200,000 Saudi Arabian riyal		0.27

Required

Prepare the adjusting entry recorded by Yum! Brands at December 31.

Description		Debit	Credit
AnswerAccounts receivableCashExchange gainExchange loss		Answer	Answer
AnswerAccounts receivableCashExchange gainExchange loss		Answer	Answer
Accounts payable		Answer	Answer