On December 16, 2016, Ava Corporation, a U.S. firm, purchased merchandise from Wig Company for 40,000 euros to be paid on January 15, 2017. Relevant exchange rates for euros are as follows:

December 16, 2016 ......................$1.20

December 31, 2016 .......................$1.25

January 15, 2017 ..........................$1.24

REQUIRED:

Prepare all journal entries on Ava Corporation's books to account for the purchase on December 16, adjustment of the books on December 31, and payment of the account payable on January 15.