The sales budget for Modesto Corp. shows that 21,900 units of Product A and 23,900 units of Product B are going to be sold for prices of $11.90 and $13.90, respectively. The desired ending inventory of Product A is 10% higher than its beginning inventory of 3,900 units. The beginning inventory of Product B is 4,400 units. The desired ending inventory of Product B is 4,900 units. Budgeted purchases of Product B for the year would be:

24,400

32,200

22,400

28,300

On November 12, Higgins, Inc., a U.S. Company, sold merchandise on credit to Kagome of Japan at a price of 3,900,000 yen. The exchange rate was $0.00861 on the date of sale. On December 31, when Higgins prepared its financial statements, the exchange rate was $0.00867. Kagome paid in full on January 12, when the exchange rate was $0.00885. On January 12, Higgins should prepare the following journal entry:

14,600

o Debit Cash $33,813; credit Accounts Receivable-Kagome $33,579; credit Foreign Exchange Gain $234. Debit Cash $33,579; debit Foreign Exchange Loss $234; credit Accounts Receivable-Kagome $33,813. oooo Debit Cash $33,579; debit Foreign Exchange Loss $936; credit Accounts Receivable-Kagome $34,515. Debit cash Debit Cash $34,515; credit Accounts Receivable-Kagome $33,579; credit Foreign Exchange Gain $936. Debit Cash $34,515; credit Accounts Receivable-Kagome $33,813; credit Foreign Exchange Gain $702