During December of the current year, Teletext System, Inc., a company based in seattle, Washington, entered into the following transactions:

12/10 - Sold seven office computers to a. company located in Colombia for 8,541,000 pesos. On this date, the Spot rate was 365 pesos per U.S. dollar.

12/12 - Purchased computer chips from a company domiciled in Taiwan. The contract was denominated in 500,000 Taiwan dollars. The direct exchange Spot rate on the date was $0.0391.

Required:

A. Prepared journal entries to record the above on the books of Teletex Systems, Inc. The company uses a periodic inventory system.

B. Prepare journal entries necessary to adjust the accounts as of December 31. Assume that on December 31 the direct exchange rates were as follows: Colombia peso $0.00268 Taiwan dollar $0.0351 12/