At the end of the fiscal year, December 31, 20X2, Avonlea Ltd. finds itself with two accounts

Question:

At the end of the fiscal year, December 31, 20X2, Avonlea Ltd. finds itself with two in pesos:
1. From a sale on July 1, 20X2, and due to be collected on December 1, 20X3, for 1,000,000 pesos.
2. From a sale on September 1, 20X2, and due to be collected on February 1, 20X4, for 2,000,000 pesos.
Exchange rates (spot):
July 1, 20X2.......................... $ 1 = 16 pesos
September 1, 20X2...................... $ 1 = 17 pesos
December 31, 20X2...................... $ 1 = 18 pesos
December 1, 20X3........................ $ 1 = 11 pesos
December 31, 20X3...................... $ 1 = 9 pesos

Required
Prepare the journal entries for December 31, 20X2, and December 1 and December 31, 20X3, assuming that the foreign exchange risk is not hedged.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...