Prepare journal entries on the settlement date (date of receipt), January 22, 2021.

 

 PROBLEM 2 Prepare journal entries on settlement date, January 7, 2022.

PROBLEM 1: On September 9, 2020, Selma Inc. accepted a noncancellable merchandise sales order from a Japanese firm. The contract price was 100,000 yens. The goods were delivered on December 14, 2020. The invoice was dated December 11, 2020, the shipping date (FOB shipping point). Full payment was received on January 22, 2021. The spot direct exchange rates are as follows: September 9, 2020 December 11, December 14, December 31, January 22, 2021 2020 2020 2020 PO.75 PO.78 PO.77 PO.73 PO.725