Prepare journal entries for the following:
Items sold for 60,000 Singapore Dollars. The exchange rate on December 20 was $0.476 per Singapore Dollar. The purchase terms were n/30.
On December 31 the exchange rate was $0.480 per Singapore Dollar.
On January 17 payment was received for the December 20 sale. The exchange rate was $0.495 per Singapore Dollar.
12/20 Accounts Receivable 28,560 (SGD 60,000*SGD 1/$.476)
To record a sale ...
This solution illustrates the journal entries made when a sale is made in a foreign currency, the accounts receivable account is adjusted at year-end for the currency translation, and the account is settled in foreign currency.