On Nov. $1,20$x$1,$ TasteeFood Co$.,$ a U$.$S$.$ company, purchased and received $15$ tons of assorted dried peppers from Ola Co$.$ which is On Nov. $1,20$x$1,$ TasteeFood Co$.,$ a U$.$S$.$ company, purchased and received $15$ tons of assorted dried peppers from Ola Co$.$ which is

located in Mexico. The peppers cost a total of $100$ million pesos but TasteeFood does not plan to pay the related payable until Feb.

$1,202.$

TasteeFood is concerned that pesos may increase in value so decided on Nov. $1,20$x$1$ to hedge using a forward contract, with a

forward price of $$\frac{0\mathrm{.}047}{?}$ peso. Some rates are:

Q$23-$Make any journal entries needed on $12/31/20$x$1($a reporting date$)$ for anything related to the purchase and forward. Use that

entry or entries to answer this question: What is the total effect of any entries needed on Dec $31,20$x$1$ on Accounts Payable?

$$400,000$ credit

$$400,000$ debit

$$100,000$ credit

No effect

None of the above

located in Mexico. The peppers cost a total of $100$ million pesos but TasteeFood does not plan to pay the related payable until Feb.

$1,202.$

TasteeFood is concerned that pesos may increase in value so decided on Nov. $1,20$x$1$ to hedge using a forward contract, with a

forward price of $$\frac{0\mathrm{.}047}{?}$ peso. Some rates are:

Q$22$: Make any journal entries needed on Now $1,20$x$1$ for anything related to the purchase and forward. Use that entry or entries

to answer this question: What is the total effect of any entries needed on Nov $1,20$x$1$ on Inventory?

$$300,000$ debit

$$4,700,000$ debit

$$5,000,000$ debit

$$5,600,000$ debit

None of the above