• A US company buys goods from an Italian importer on November 6, 2016 and the purchase value is €100,000 to be paid on January 13, 2017.

• Assume that the US company closes its books monthly.

• The following are the relevant exchange rates:

• Spot rates per          € : 

• Nov. 6:                   $1.20,

• Nov. 30:                $1.15, 

• Dec. 31:                 $1.18, 

• Jan. 13:                  $1.23

• Make the necessary journal entries.

Answer rating: 100% (QA)

Solution Summary of Exchange Rate ProfitLoss Amount Exchange Rate Amount Date Exchange Profi... View the full answer