Assume that on May 1, Zavior Corporation (a U.S. company) sells goods to a Portuguese corporation at

Question:

Assume that on May 1, Zavior (a U.S. company) sells goods to a Portuguese at a price of 100,000 euros, with payment due within three months. At the date of the sale, the is $1.20 per euro. The Portuguese customer waits until the three months have passed and pays for the purchase on July 31, when the is $1.18 per euro. What is the gain or loss on the transaction for Zavior? Show the journal entries that Zavior would record on May 1 and on July 31.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...