Tinitoys, Inc., a domestic company, purchased inventory from a Brazilian company for 500,000 Brazilian reals (Br. reals) on May 1, 20X2. Payment is due on June 30, 20X2. On May 1, 20X2, Tinitoys also entered into a 60-day forward contract to purchase 500,000 Brazilian reals. The forward contract is not designated as a hedge. Tinitoys' fiscal year ends on May 31. The direct exchange rates were as follows:

	Spot Rate				Forward Rate
May 1, 20X2	$	0.523			$	0.525	(60 days)
May 31, 20X2	$	0.516			$	0.52	(30 days)
June 30, 20X2	$	0.508

Based on the preceding information, the entries on June 30, 20X2, include a

• debit to Foreign Currency Transaction Loss, $4,000.

• credit to Foreign Currency Units (Br. reals), $262,500.

• credit to Cash, $262,500.

• debit to Dollars Payable to Exchange Broker, $254,000.