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"Peerless Corporation (a U.S. company) made a sale to a foreign customer on September 15, for 106,000 crowns. It received payment on October 15. The following exchange rates for 1 crown apply: Prepare all journal entries for Peerless in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements. (If no entry is required for a transaction/event, select "" No journal entry required"" in the first account field.) 4 journal entries"

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Question. The exchange rate was not added to your question. Below is the exchange rate used to answer this question.

September 15     $ 0.60  

September 30     $0.66  

October 15       $0.62

Answer: See the explanation for the prepared journal entry.

Explanation:

Date        Account title/Explanation                          Debit              Credit

Sept 15   Account receivable (106,000*0.6)             63600

               Sales                                                                                  63600

                (To record the sales)

Sept 30   Account receivable(106,000*(0.66-0.6)     6360      

               Foreign exchange gain                                                      6360

             [ To record the adjustment of forex gain/loss]

Oct. 15    Foreign exchange gain/loss

                (106000*(0.66-0.62)                                     4240

               Account receivable                                                              4240

               [ To record the entry for changes

                   in the exchange rate]

Oct 15      Cash   (106,000*0.62)                                     65720

                account receivable                                                             65720

              [ To record the entry for receipt of payment]

Note; No journal entry require for 3rd entry.

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