Question
On December 1, Year 1, Sierra Vista Automotive purchases inventory from a German supplier for 40,000 fan belts. Payment will be made in 90 days
On December 1, Year 1, Sierra Vista Automotive purchases inventory from a German supplier for 40,000 fan belts. Payment will be made in 90 days after Sierra Vista Automotive has sold this merchandise. Sales are made rather quickly, and Sierra Vista Automotive pays this entire obligation on February 15, Year 2. The following exchange rates for 1 fan belt apply:
Date U.S. Dollar per fan belt
December 1, Year 1 $0.87
December 31, Year 1 0.82
February 15, Year 2 0.91
Required: Prepare all journals entries for Sierra Vista Automotive in connection with the purchase and payment.
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Principles Of External Auditing
Authors: Brenda Porter, Jon Simon, David Hatherly
1st Edition
0471962120, 978-0471962120
