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On October 1, Year 6, Versatile Company contracted to sell merchandise to a customer in...

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Accounting

On October 1, Year 6, Versatile Company contracted to sell merchandise to a customer in Switzerland at a selling price of CHF582,000. The contract called for the merchandise to be delivered to the customer on January 31, Year 7, with payment due on delivery. On October 1, Year 6, Versatile arranged a forward contract to deliver CHF582,000 on January 31, Year 7, at a rate of CHF1=$1.25. Versatile's year-end is December 31.
The merchandise was delivered on January 31, Year 7, and CHF582,000 was received and delivered to the bank.
Exchange rates were as follows:
\table[[October 1, Year 6,Spot Rates,Forward Rates**],[December 31, Year 6,CHF1=$1.23,CHF1=$1.25
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