Recording Import Transactions Northern Merchandise Company imports a variety of items for re- LO 1 sale to U.S. retailers. Following is a description of purchases and foreign-currency-denominated payments made in the last accounting period, plus the direct exchange rates for each date:

Required
Prepare the journal entries made by Northern, a U.S. company, to record the above purchase and payment transactions.

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Spot Rate at Spot Rate at Payment Country Amount Currency Purchase Australia. 200,000 Australian Dollar $1.02000 Thailande Indonesia...*..5,000,000 Rupiah Jordan 0.03500 0.00015 1.42000 $1.05000 0.03300 0.00014 1.42000 800,000 Baht 500,000 Dinar