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1- ABC, Inc. purchased inventory from a company in Brazil on December 15, 2021 and...

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Accounting

1- ABC, Inc. purchased inventory from a company in Brazil on December 15, 2021 and agreed to pay 15,000 Brazilian reais. The payment was made on January 25, 2022.

The exchange rates between the dollar and the Brazilian real are summarized below:

Date

Real

Brazilian

US

dollar

1/1/21

1

0.195

12/15/21

1

0.190

12/31/21

1

0.200

1/1/22

1

0.210

1/25/22

1

0.220

1/31/22

1

0.215

REQUIRED: Prepare all journal entries for ABC, Inc. from inventory purchase to supplier payment in Brazil.

2- The historical exchange rate is the exchange rate that existed when a specific transaction occurred, such as the effective exchange rate on the day a piece of equipment was purchased.

true

false

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