Question
Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 100,000 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 100,000 pesos on credit. May 1 Sold 60 percent of the inventory for 80,000 pesos on credit. August 1 Collected 70,000 pesos from customers. September 1 Paid 60,000 pesos to suppliers.
Currency exchange rates for 1 peso for 2020 are as follows:
Date U.S. Dollar per Peso March 1 $0.10 May 1 0.12 August 1 0.13 September 1 0.14 December 31 0.15
Inventory | 4,000 | 100,000 pesos x 0.10 x 40% unsold | |
Cost of goods sold | 6,000 | 100,000 pesos x 0.10 x 60% sold | |
Sales | 9,600 | 80,000 pesos x 0.12 | |
Accounts receivable | 1,500 | (80,000 - 70,000) x 0.15 | |
Accounts payable | 6,000 | (100,000 - 60,000) x 0.15 | |
Cash | 700 | Cash in 70,000 x 0.13 less cash out 60,000 x 0.14 |
Q:Prepare all journal entries in U.S. dollars along with any , adjusting entries. uses perpetual inventory system.
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