Journal entries in 20x1 and 20x2 2. On September 1, 20x1, Creed Co. sold merchandiseforeign entity for 250,000 francs. Terms of the salepayment in francs on February 1, 20x2. On September 1, 20the spot exchange rate was P1.20 per franc. At December 3120x1, the spot rate was P1.19, but the rate increased to P1.22 byFebruary 1, 20x2, when payment was received.requireRequirement: Provide the journal entries in 20x1 and 20x2.

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Description: Journal entries in 20x1 and 20x2 2. On September 1, 20x1, Creed Co. sold merchandiseforeign entity for 250,000 francs. Terms of the salepayment in francs on February 1, 20x2. On September 1, 20the spot exchange rate was P1.20 per franc. At December 3

Foreign exchange rate is the value of one currency in the terms of other currency. Foreign exchange…

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2. On September 1, 20x1, Creed Co. sold merchandise to a foreign entity for 250,000 francs. Terms of the sale require payment in francs on February 1, 20x2. On September 1, 20x1, the spot exchange rate was P1.20 per franc. At December 31 20x1, the spot rate was P1.19, but the rate increased to P1.22 by February 1, 20x2, when payment was received. Requirement: Provide the journal entries in 20x1 and 20x2.

2. On September 1, 20x1, Creed Co. sold merchandise to a foreign entity for 250,000 francs. Terms of the sale require payment in francs on February 1, 20x2. On September 1, 20x1, the spot exchange rate was P1.20 per franc. At December 31 20x1, the spot rate was P1.19, but the rate increased to P1.22 by February 1, 20x2, when payment was received. Requirement: Provide the journal entries in 20x1 and 20x2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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