Suppose A company. sells shoes to a Europe company on March 14. A agrees to accept 2,000,000
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Suppose A company. sells shoes to a Europe company on March 14. A agrees to accept 2,000,000 euros. On the date of sale, the euro is quoted at $1.62.
A collects half the receivable on April 19, when the euro is worth $1.61. Then, on May 10, when the price of the euro is $1.65, A collects the final amount. Journalize these three transactions for A; include an explanation. Overall, did A have a net foreign-currency gain or loss?
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