On July 1, Vortex Enterprises, a U.S. company, purchased goods on account from a German...
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On July 1, Vortex Enterprises, a U.S. company, purchased goods on account from a German company for a U.S equivalent of $19,500 to be paid on December 8th. The exchange rates on July 1 and December 8 are as follows: July 1 - 1 Euro = $1.144 U.S. December 8 - 1 Euro = $1.183 U.S A. Prepare the journal entries to record the purchase and the payment if the two transactions are denominated in US dollars. B. Prepare the journal entries to record the purchase and the payment if the two transactions are denominated in the local currency units. I am struggling with the fluctuation in the exchange rate. Thank you for your help.
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