FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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QUESTION 3
Plus Inc. exports flour to Germany. Prepare journal entries, including explanation to record the following events:
Jan. 15, 2021: Sold flour to a German restaurant chain at a price of 2 million euros, due in 90 days. The current
exchange rate is $0.70 U.S. dollars per euro. (Plus Inc. uses the periodic inventory method.)
Mar 31, 2021: Plus Inc. made a year-end adjusting entry relating to the account receivable from the German
restaurant chain. The exchange rate at year-end is $0.75 U.S. dollars per euro.
Apr. 15, 2021: Received a check for $1,440,000 from the InterContinental Bank in full settlement of the
receivable from the German restaurant chain. The exchange rate at this date is $0.72 U.S. dollars per euro.
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Transcribed Image Text:QUESTION 3 Plus Inc. exports flour to Germany. Prepare journal entries, including explanation to record the following events: Jan. 15, 2021: Sold flour to a German restaurant chain at a price of 2 million euros, due in 90 days. The current exchange rate is $0.70 U.S. dollars per euro. (Plus Inc. uses the periodic inventory method.) Mar 31, 2021: Plus Inc. made a year-end adjusting entry relating to the account receivable from the German restaurant chain. The exchange rate at year-end is $0.75 U.S. dollars per euro. Apr. 15, 2021: Received a check for $1,440,000 from the InterContinental Bank in full settlement of the receivable from the German restaurant chain. The exchange rate at this date is $0.72 U.S. dollars per euro.
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