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Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 119,000 pesos on credit.
Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020:
March 1 | Bought inventory costing 119,000 pesos on credit. |
May 1 | Sold 60 percent of the inventory for 99,000 pesos on credit. |
August 1 | Collected 79,500 pesos from customers. |
September 1 | Paid 69,500 pesos to suppliers. |
Currency exchange rates for 1 peso for 2020 are as follows:
Date | U.S. Dollar per Peso | ||
March 1 | $ | 0.17 | |
May 1 | 0.18 | ||
August 1 | 0.19 | ||
September 1 | 0.20 | ||
December 31 | 0.21 | ||
Assume that all receipts were converted into dollars as soon as they were received.
Voltac will report each of the following accounts on its 2020 financial statements.
Inventory $8,092
Cost of goods sold $12,138
Sales $17,820
Accounts receivable $4,095
Accounts payable $10,395
Cash $1,205
What are the corresponding journal entries?
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