Kyoto Manufacturing produces automobile mufflers, which are then sent to the United States where they are installed in domestically built cars. Truck Inc., a U.S. auto company, received a shipment of mufflers on December 15, 2010. The mufflers were subsequently paid for on January 30, 2011. The invoice was denominated in Korean won and totaled 4,500,000 won. The number of Korean won required to purchase 1 U.S. dollar fluctuated as follows:
Exchange Rates
December 15, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
December 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900
January 30, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 880
Provide the necessary journal entries for Truck Inc. to record the above transactions assuming Truck Inc.’s fiscal year-end is December 31.