On november 12 kendra inc a us company sold merchandise on, Ask an Expert

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On November 12, Kendra, Inc., a U.S. Company, sold merchandise on credit to Nakakura Company of Japan at a price of 1,540,000 yen. The exchange rate was $.00841 per yen on the date of sale. On December 31, when Kendra prepared its financial statements, the exchange rate was $.00847. Nakakura Company paid in full on January 12, when the exchange rate was $.00865. On December 31, Kendra should prepare the following journal entry (Do not round your intermediate calculations and round your final answer to nearest dollar amount):

Debit Sales $92; credit Foreign Exchange Gain $92.
Debit Foreign Exchange Loss $92; credit Sales $92.
Debit Accounts Receivable-Nakakura Company $92; credit Foreign Exchange Gain $92.
Debit Foreign Exchange Loss $92; Accounts Receivable-Nakakura Company $92.
No journal entry is required until the amount is collected.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9979794

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