Merchant Company had the following foreign currency transactions: 1. On November 1, 20X6, Merchant sold goods to a company located in Munich, Germany. The receivable was to be settled in European euros on February 1, 20X7, with the receipt of 260,000 by Merchant Company. 2. On November 1, 20X6, Merchant purchased machine parts from a company located in Berlin, Germany. Merchant is to pay 130,000 on February 1, 20X7. The direct exchange rates are as follows: November , 20X6 December 31, 20x6 February 1, 20X7 l- 0.60 1 0.62 1 0.58 Required: Record the T-accounts for the following transactions (Record the transactions in the given order.) 1. The November 1, 20X6, export transaction (sale) 2. The November 1, 20X6, import transaction (purchase). 3. The December 31, 20X6, year-end adjustment required of the foreign currency-denominated receivable of 260,000. 4. The December 31, 20X6, year-end adjustment required of the foreign currency-denominated payable of 130,000. 5. The February 1, 20X7, adjusting entry to determine the U.S. dollar-equivalent value of the foreign currency receivable on that date 6. The February 1, 20X7, adjusting entry to determine the U.S. dollar-equivalent value of the foreign currency payable on that date 7. The February 1, 20X7, settlement of the foreign currency receivable. 8. The February 1, 20X7, settlement of the foreign currency payable Foreign Currency Units() Accounts Receivable () 11/1/X6 260,000 11/1/X6 260,000 Bal. 2/2X7 Bal 12/31/X6 260,000 260,000 Bal. 2/2X7 260,000 Bal. 2/1/X7 260,000 Bal. 2/2/X7260,000 260,000 Bal. 2/2/X7 Accounts Payable () Foreign Currency Transaction Loss 11/1X6 260,000 Bal 12/31/X6 260,000 Bal. 2/2/X7 Bal. 2/17 260,000 Bal. 2/2/X7 Bal. 2/2/X7 260,000 Bal. 2/2X7 Foreign Currency Transaction Gain Bal. 212X7 Bal. 2/2X7 Bal. 2/2X7