school 2

Francisco, a company whose functional currency is the N$ (dollar), entered into the following foreign currency transactions: 31.10.2021 Purchased goods on credit from Mexico SA for 129,000 Mexican pesos 31.12.2021 Payables have not yet been paid 31.01.2019 Francisco paid its payables. The exchange rates are as follows: Required Explain how these transactions would be recorded in the books of Francisco for the years ended 31 December 2021 and 2022