Assume that Better Buy Stores completed the following foreign-currency transactions: May 9 Purchased DVD players as inventory

Question:

Assume that Better Buy Stores completed the following foreign-currency transactions:

May 9 Purchased DVD players as inventory on account from Toyita, a Japanese company. The price was 400,000 yen, and the exchange rate of the yen was $0.0083.

Jun 18 Paid Toyita when the exchange rate was $0.0078.

22 Sold merchandise on account to Bon Appetit, a French company, at a price of 10,000 euros. The exchange rate was $1.17.

28 Collected from Bon Appetit when the exchange rate was $1.11.

Requirements

1. Journalize these transactions for Better Buy. Focus on the gains and losses caused by changes in foreign-currency rates. (Round your answers to the nearest whole dollar.)

2. On May 10, immediately after the purchase, and on June 23, immediately after the sale, which currencies did Better Buy want to strengthen? Which currencies did in fact strengthen? Explain your reasoning.

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...