Firm commitment Foreign currency (euro) Foreign currency option Foreign exchange gain or loss Forward contract No journal entry required Accounts payable (euro) Accounts receivable (euro) Accumulated other comprehensive income Inventory Loss on firm comittment Loss on foreign contract Loss on foreign currency option Loss on forward contract Gain on firm comittment Gain on foreign contract Gain on foreign currency option Gain on forward contract Interest expense Option expense Sales Adjustment to net income Cash Cost of goods sold Discount expense Equipment Pacifico Company, a U.S.-based importer of beer and wine, purchased 2,000 cases of Oktoberfest-style beer from a German supplie or 620,000 euros. Relevant U.S. dollar exchange rates for the euro are as follows: The company closes its books and prepares third-quarter financial statements on September 30. a. Assume that the beer arrived on August 15, and the company made payment on October 15. There was no attempt to hedge the exposure to foreign exchange risk. Prepare journal entries to account for this import purchase. Assume that the beer arrived on August 15 , and the company made payment on October 15 . There was no attempt to hedge the exposure to foreign exchange risk. Prepare journal entries to account for this import purchase. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet 56 Record the entry to adjust the value of the euros to the new spot rate. Note: Enter debits before credits