FreshFoods, Inc. sells American gourmet foods to merchandisers in Singapore. Prepare the journal entries for FreshFoods, to record the following transactions. Include any year-end adjustments.Dec 20Sold items to Tan, Inc., for 60,000 Singapore dollars. The exchange rate was $0.476 per Singapore dollar. The purchase terms were n/30.Dec 31The exchange rate was $0.480 per Singapore dollar.Jan 17Received payment from Tan for the December 20 sale. The exchange rate was $0.495 per Singapore dollar.
What will be an ideal response?
| ? |
| Dec 20 | Accounts Receivable (60,000 * $0.476) | 28,560 | ? |
| ? | Sales | ? | 28,560 |
| Dec 31 | Accounts Receivable [60,000 * ($0.476 - $0.480)] | 240 | ? |
| ? | Foreign Exchange Gain | ? | 240 |
| Jan 17 | Cash (60,000 * $0.495) | 29,700 | ? |
| ? | Foreign Exchange Gain | ? | 900 |
| ? | Accounts Receivable (28,560 + 240) | ? | 28,800 |
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