Question
Bugeja Limited is an Australian company that sells premium miniature Maltese Falcon statuettes into the European market. In order to maintain certainty for customers, the
Bugeja Limited is an Australian company that sells premium miniature Maltese Falcon statuettes into the European market. In order to maintain certainty for customers, the statuettes have a fixed price in Euros ( = EUR ), and so Bugeja is exposed to currency risk on its Australian dollar ($= AUD) revenues.
On the 1st of May, 2022, Bugeja received an order for 100 statuettes from a retailer in Valletta (Malta). The agreed price of the shipment was 100 000, with terms FOB shipping date. The goods were shipped on the 15th of May, 2022, with payment due on the 15th of July, 2022. Bugeja's financial year ends on the 30th of June.
The following exchange and spot rate information if available:
Required
Assuming that payment is received on time, show the journal entries (if any) for each of the following dates (with amounts shown to the nearest dollar):
1st May, 2022
15th May, 2022
30th June, 2022
15th July, 2022
If no journal entry is required on a particular date, then please state this and discuss why no entry is required.
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