A U.S. company has the following transactions:

a. The company takes delivery of merchandise costing £100,000 on October 19, 2023.

b. The company pays for the merchandise, in pounds sterling, on February 19, 2024.

c. It sells the merchandise on March 22, 2024. The U.S. company has a December 31 year-end.

The U.S. company has a December 31 year-end.

Spot rates ($/£) are as follows:

	Spot Rate
October 19, 2023	$1.385
December 31, 2023	1.387
February 19, 2024	1.400

Prepare the entries for each transaction and the adjusting journal entry (AJE) at 12/31/23 that the U.S. company must make to update its receivables and payables.

Be sure to display your supporting calculations for each adjusting entry.

Answer rating: 100% (QA)

a On October 19 2023 the company takes delivery of merchandise costing 100000 The exchange rate on t... View the full answer