Journal entries for an account receivable denominated in Euros ($US weakens) Assume that your company sells products to a customer located in France on October 15. The invoice specifies that payment is to be made on January 15 in Euros () in the amount of 210,000. Your company operates on a calendar year basis.

Assume the following exchange rates:

October 15	$1.05: 1
December 31	$1.15: 1
January 15	$1.20: 1

Prepare the journal entries to record the sale (ignore cost of goods sold), the required adjusting entry at December 31, and the receipt of payment January 15.

General Journal
Date	Description	Debit	Credit
Oct	15	AnswerCashAccounts receivableSalesForeign currency transaction gainForeign currency transaction loss	Answer	Answer
		AnswerCashAccounts receivableAccounts payableSalesForeign currency transaction gainForeign currency transaction loss	Answer	Answer
Dec	31	AnswerCashAccounts receivableSalesForeign currency transaction gainForeign currency transaction loss	Answer	Answer
		AnswerCashAccounts receivableAccounts payableSalesForeign currency transaction gainForeign currency transaction loss	Answer	Answer
Jan	15	AnswerCashAccounts receivableSalesForeign currency transaction gainForeign currency transaction loss	Answer	Answer
		Accounts receivable	Answer	Answer
		AnswerCashAccounts receivableAccounts payableSalesForeign currency transaction gainForeign currency transaction loss	Answer	Answer