Question

Gaw Produce Co. Purchased inventory from a Japanese Company on December 18, 2009.Payment of x$400,000 was...

Gaw Produce Co. Purchased inventory from a Japanese Company on December 18, 2009.Payment of x$400,000 was due on January 18, 2010. Exchage rates between the dollar and the yen were as follows;

Date Exchange rate

Dec.18 2009 $1=Y125

Dec. 31 2009 $1=Y122

Jan.18, 2010 $1=Y120

Required:

Prepare all journal entries for Gaw Produce Co. in connection with the purchase and payments

Please provide explanation

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