On 10 Dec, ABC company sold five office computers to a company located in Colombia for 11,351,500 pesos. On this date, the spot rate was 365 pesos per U.S. dollar.

Required:

a. Prepare the journal entry on the books of ABC company.

b. Prepare journal entry necessary to adjust the accounts as of 31 December. Assume that on 31 December, the direct exchange rates was Colombia peso $.00259.

c. Prepare journal entry necessary to adjust the accounts as of 31 December. Assume that on 31 December, the direct exchange rates was Colombia peso $.00279.