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AgroComp is a Croatian company and regularly buys merchandise in the US. a) On Dec 5, 20X5, they bought merchandise for $87,000, to be settled

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AgroComp is a Croatian company and regularly buys merchandise in the US. a) On Dec 5, 20X5, they bought merchandise for $87,000, to be settled in US dollars. The account was paid in full on January 11, 20X6. The exchange rate fluctuated as follows: December 5, 20x5: 6.24 kn per $ December 31, 20X5: 6.12 kn per $ January 11, 20X6: 6.29 kn per $ Date Accounts Debit Credit 5.12.20X5 Purchase 31.12.2025 Year-end adjustment 11.1.20X6 Payment b) What is the overall effect of the above journal entries for AgroComp's profit in the years 20x5 and 20X6? Compute and explain

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