ABC Company, a US enterprise, sold product to a customer in Wales on October 1, 20X1 for 100,000 euros with payment required on April 1, 20x2. Relevant exchange rates are: Spot Rates Forward Rate to 4/1/X2 October 1, 20x1 $1.80 $1.83 December 31, 20x1 $1.82 $1.84 April 1, 20x2 $1.86 The discount rate corresponding to the company's incremental borrowing rate for 6 months is 0.95. Assume that Amazing Corporations enters into a forward contract on October 1, 20x1 to sell 100,000 euros six months hence, on April 1, 20x2. What is the last journal entry that ABC Co. should make on April 1, 20x2 when it goes to the bank to sell the 100,000 euros? Assume any additional gain or loss associated with the forward contract has already been posted.

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To determine the journal entry that ABC Co should make on April 1 20X2 when selling the 100000 euros ... View the full answer