On June 3 Kratz Company a U S company purchased inventory
On June 3, Kratz Company, a U.S. company, purchased inventory on credit from a British Company for £40,000. Kratz properly recorded its inventory and accounts payable at $72,800, based on an exchange rate of $1.82.
Kratz paid for the inventory on June 24 when the exchange rate was $1.86. Prepare the journal entry of Kratz Company to record the payment.

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