Question3: During December 2018 of the current year, Earmark Systems, Inc., a company based in Seattle, Washington, entered into the following transactions: Inventory delivered on 12/10/2018 and 2,135,250 pesos received on 1/10/2019 Dec. 10, Sold Nine office computers to a company located in Colombia for 2,135,250 pesos. On this date, the spot rate was 365 pesos per U.S. dollar.

- Prepare journal entry necessary to adjust the accounts as of December 31. Assume that on December 31 the direct exchange rates was Colombia peso $.00268. Prepare journal entry to record settlement of the account on January 10. Assume that the direct exchange rate on the settlement date was Colombia peso $.00320