2. A U.S. company, with an accounting year end of December 31, engages in the...
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Accounting
2. A U.S. company, with an accounting year end of December 31, engages in the transactions indicated below. The companys inventory allocation method is FIFO and they use the perpetual inventory system.prepare the entries to recognize the above transactions
On May 20, when the exchange rate was $1.40/, a U.S. company purchased merchandise from a U.K. supplier for 10,000.
On June 5 the U.S. company acquired the required amount of U.K. s and paid for the merchandise when the exchange rate was $1.38/.
On August 15, when the exchange rate was $1.23/, the U.S. company sold the merchandise purchased from the U.K. supplier to a customer in Belgium at an invoice price of 16,000.
On September 6, when the exchange rate was $1.21/, the U.S. company received payment of 16,000 from the Belgian customer
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