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Assume that your company purchases inventories from a supplier on December 15. The invoice specifies...

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Accounting

Assume that your company purchases inventories from a supplier on December 15. The invoice specifies that payment is to be made on March 15 in Euros in the amount of 10,000 Euros. Your company operates on a calendar year basis. Assume the following exchange rates and the company does not enter into any hedging arrangements:

December 15

$1.35 :1 Euro

December 31

$1.37 :1 Euro

March 15

$1.38 :1 Euro

Requirement: Prepare the journal entry to record the purchase on December 15 assuming a perpetual inventory accounting system is used:

Requirement: Prepare the journal entry that needs to be made on December 31

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