Doering Company, a U.S. corporation with customers in several foreign countries, had the following selected transactions for 2013 and 2014.
2013 Apr. 8Sold merchandise to Salinas & Sons of Mexico for $54,365 cash. The exchange rate for pesos is $0.1371 on this day.
July 21Sold merchandise on credit to Sumito Corp. in Japan. The price of 2.5 million yen is to be paid 120 days from the date of sale. The exchange rate for yen is $0.0085 on this day.
Oct. 14Sold merchandise for 18,700 pounds to Smithers Ltd. of Great Britain, payment in full to be received in 90 days. The exchange rate for pounds is $1.5020 on this day.
Nov. 18Received Sumito's payment in yen for its July 21 purchase and immediately exchanged the yen for dollars. The exchange rate for yen is $0.0080 on this day.
Dec. 20Sold merchandise for 17,500 ringgits to Hamid Albar of Malaysia, payment in full to be received in 30 days. On this day, the exchange rate for ringgit is $0.6917.
Dec. 31Recorded adjusting entries to recognize exchange gains or losses on Doering's annual financial statements. Rates for exchanging foreign currencies on this day follow.
Pesos (Mexico) $ 0.1383
Yen (Japan) 0.0084
Pounds (Britain) 1.5074
Ringgits (Malaysia) 0.6872
2014
Jan. 12Received full payment in pounds from Smithers for the October 14 sale and immediately exchanged the pounds for dollars. The exchange rate for pounds is $1.5153 on this day.
Jan. 19Received Hamid Albar's full payment in ringgits for the December 20 sale and immediately exchanged the ringgits for dollars. The exchange rate for ringgits is $0.6836 on this day.
Prepare journal entries for the Doering transactions and adjusting entries.