On April 1, QBT Corporation, with year-end December 31, an electronics retailer buys 3.25-million-dollar worth of electronic chips from a US manufacturer paying 20% down, the balance to be paid in 3 months. Interest of 12% is to be calculated on the unpaid balance. The Kuwaiti dinar to the US dollar exchange rate on April 1 was KWD 1 = US$3.00; on July 1 it was KWD 1 = US$3.10

Required:

1. Prepare dated journal entries, in the books of QBT Corporation, to record the incurrence and settlement of this foreign currency transaction.
2. Prepare dated journal entries in the books of the US manufacturer related to this transaction