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E11-4 Account Balances LO 11-2 Merchant Company had the following foreign currency transactions On November 1,20X6, Merchant sold goods to a company located in Munich, Germany The receivable Company Merchant is to pay 120,000 on February 1, 20X7 1. in European euros on February 1, 20X7, with the receipt of 240,000 by Merchant 2. On November 1, 20X6, Merchant purchased machine parts from a company located in Bertin, Germany The direct exchange rates are as follows 1 S0.60 1- $058 November 1, 20x6 December 31, 20X61$0.62 February 1, 20X7 Required: Record the T-accounts for the following transactions (Record the transactions in the given order.) 1. The November 1, 20X6, export transaction (sale). 2 The November 1, 20x6, import transaction (purchase) 3. The December 31, 20x6, year-end adjustment required of the foreign currency-denominated receivable of 240,000 4 The December 31, 20x6, year-end adjustment required of the foreign currency-denominated payable of 120,000 5. The February 1, 20X7, adjusting entry to determine the US dollar-equivalent value of the foreign currency receivable on that date 6. The February 1, 20x7, adusting entry to determine the US dollar-equivalent value of the foreign currency payable on that date 7. The February 1, 20X7, settlement of the foreign currency receivable 8. The February 1, 20x7, settlement of the foreign currency payable. Foreign Currency Units () nts Bal. 22X7 Bail. 12/31/X6 Bal. 2/2/X7 Bal. 2/1/ Bal. 2/2X7 Bal. 2/20X7 Accounts Payable () Foreign Currency Tra Loss