I need your assistance, I need a solution for the below question that I have?
Purchases for the amount of EUR 12,000 were bought from one supplier in France and the invoice is payable within 60 days in Euros. the invoice was received and recorded in the company's accounts on May 31st, 2006 the exchange rate of Euros to US$ was 1 Euro=1.30 US$ and 1 Euro= 1.25 US$ on May 31st,2006 and June 30th, 2006 respectively.
Please prepare the required journal entries on May 31st and June 30th assuming that the company maintains its Accounting in U.S. dollars and closes its accounts on a quarterly basis.
CAclubindia
