Assume that On October 1, 2019 an Egyptian company purchased goods for $ 600,000 from an American Company, however some of the products that are purchased are defected, so they are returned with $ 200,000. The Egyptian company agreed with the American company to pay the amount on March 1, 2020. The Egyptian companys fiscal year-end is December 31.

The spot for dollar at various times was as follows: -

Transaction date October 1, 2019 L.E. 17.8

- Balance sheet date Dec. 31, 2019 L.E. 17.7

- Settlement date March 1, 2020. L.E. 17.8

Required: A. Prepare the journal entry to record the transaction on October 1, 2019.

B. Prepare the journal entry at the balance sheet date Dec. 31, 2019.

C. Prepare the journal entry to record the settlement on March 1, 2020.