Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020:
March 1 Bought inventory costing 100,000 pesos on credit. May 1 Sold 60 percent of the inventory for 80,000 pesos on credit. August 1 Collected 70,000 pesos from customers. September 1 Paid 60,000 pesos to suppliers.
Currency exchange rates for 1 peso for 2020 are as follows:
Date U.S. Dollar per Peso March 1 $0.10 May 1 0.12 August 1 0.13 September 1 0.14 December 31 0.15

Inventory	4,000		100,000 pesos x 0.10 x 40% unsold
Cost of goods sold	6,000		100,000 pesos x 0.10 x 60% sold
Sales	9,600		80,000 pesos x 0.12
Accounts receivable	1,500		(80,000 - 70,000) x 0.15
Accounts payable	6,000		(100,000 - 60,000) x 0.15
Cash	700		Cash in 70,000 x 0.13 less cash out 60,000 x 0.14

Q:Prepare all journal entries in U.S. dollars along with any , adjusting entries. uses perpetual inventory system.

Answer rating: 100% (QA)

To prepare the journal entries in US dollars for the importexport transactions denominated in Mexica... View the full answer