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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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