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Question
The Kruk Company regularly sells merchandise to German customers. On December 1, 2012, Kruk sold merchandise to a German customer at a price of three million Euros; the customer is required to pay for the goods on February 1, 2013. The spot rate was $.875 per euro on December 1, 2012, it was $.8875 per euro on December 31, 2012, and it was $.865 per euro on February 1, 2013.
Required:
Prepare the journal entries that might be necessary on December 1, 2012, December 31, 2012, and on February 1, 2013.
Answer
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