Selco, a U.S. Company, imports and exports tools, shop equipment, and industrial construction supplies. The company uses a periodic inventory system. During April the company entered into the following transactions. All rate quotations are direct exchange rates.
April 3 Purchased power tools from a wholesaler in Japan, on account, at an invoice cost of 1,600,000 yen. On this date the exchange rate

 for the yen was $.0072.
5 Sold hand tools on credit that were manufactured in the U.S. to a retail outlet located in West Germany. The invoice price was $2,800. The exchange rate
 for marks was $.5829.
9 Sold electric drills on account to a retailer in New Zealand. The invoice price was 16,800 U.S. dollars and the exchange rate
 for the New Zealand dollar was $.576.
11 Purchased drill bits on account from a manufacturer located in Belgium. The billing was for 801,282 francs. The exchange rate for francs was $.0312.
16 Paid 1,000,000 yen on account to the wholesaler for purchases made on April 3.
The exchange rate on this date was $.0067.
18 Settled the accounts payable with the Belgium manufacturer. The exchange rate was $.0368.
22 Received full payment from the New Zealand retailer. The exchange rate

 was $.568.
30 Completed payment on the April 3 purchase. The exchange rate
 was $.0078.

Required:
Prepare journal entries on the books of Selco to record the transactions listed above

Answer rating: 100% (QA)

In this question the foreign currency accounting will used to record all the transactions involving foreign currency by Selco The foreign currency acc... View the full answer