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Tex Hardware sells many of its products overseas. The following are some selected transactions. 1. Tex sold electronic subassemblies to a firm in Denmark for
Tex Hardware sells many of its products overseas. The following are some selected transactions. 1. Tex sold electronic subassemblies to a firm in Denmark for 170,000 Danish kroner (Dkr) on June 6, when the exchange rate was Dkr 1 = $0.1730. Collection was made on July 3 when the rate was Dkr 1 S0.1733 2. On July 22, Tex sold copper fittings to a company in London for 37,000 with payment due on September 20. Also, on July 22, Tex entered into a 60-day forward contract to sell 37,000 at a forward rate of 1 $1.63. The spot rates follow: 1 $1.580 1 $1.612 July 22 September 20 3. Tex sold storage devices to a Canadian firm for C$78,000 (Canadian dollars) on October 11, with payment due on November 10. On October 11, Tex entered into a 30-day forward contract to sell Canadian dollars at a forward rate of C$1 S0.73. The forward contract is not designated as a hedge. The spot rates were as follows C$1 $ C$1 $ October 11 November 10 0.735 0.732 Required: Prepare joumal entries to record Tex's foreign sales of its products, use of forward contracts, and settlements of the receivables. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 View transaction list Journal entry worksheet 1 2 3 Record the foreign sale and foreign currency receivable. Note: Enter debits before credits. Date General Journal Debit Credit June 06 2. View transaction list Journal entry worksheet 7 1 2 4 P 6 Record the foreign sale and foreign currency receivable. Note: Enter debits before credits General Journal Date Debit Credit July 22 Record entry Clear entry View general journal 3. ew transaction list Journal entry worksheet 1 2 3 4 6 7 Record the sale to a Canadian firm denominated in Canadian dollars. Note: Enter debits before credits. A
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