Question #10:

Garden Grove Corporation made an export sale of goods to a French customer on September 15, 2015, for 250,000 Euros. Payment was subsequently received on October 15, 2015. The following exchange rates apply:

Date U.S. Dollar per Euro

September 15, 2015 .. $0.45

September 30, 2015 .. 0.42

October 15, 2015 . 0.37

Required: Prepare all journal entries for Garden Grove Corporation in connection with this sale, assuming that the company closes its books on September 30^thto prepare interim financial statements:

September 15, 2015: Sale and recording of receivable

Debit Credit

September 30, 2015: Revaluation of receivable based on rate on 09-30-15

Debit Credit

October 15, 2015: Revaluation of receivable based on change of rate between Sept. 30 & Oct. 15. Record receipt of cash from French customer and settlement of receivable.

Debit Credit

Debit Credit