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GFC Ltd is an Australian company with a 3 0 June year end. GFC Ltd purchases inventories from a United States ( US ) supplier

GFC Ltd is an Australian company with a 30 June year end. GFC Ltd purchases inventories from a United States (US) supplier under an FOB shipping contract for an agreed price of $US 2,000,000. GFC Ltd placed the order to buy the goods on 22 May 20X3. The goods are put on the ship on 30 May 20X3.
GFC Ltd pays the US supplier for the inventories in two equal instalments of $US 1,000,000. The payments were made on the dates of 31 July 20X3 and 31 August 20X3.
Exchange rates are as follows:
22 May 20X3 $US 1.00= $A 2.00
30 May 20X3 $US 1.00= $A 1.80
30 June 20X3 $US 1.00= $A 1.50
31 July 20X3 $US 1.00= $A 1.60
31 August 20X3 $US 1.00= $A 1.30
Prepare the journal entries of GFC Ltd in respect of the purchase of inventory, the year-end adjustment to accounts payable and settlement of accounts payable.

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