The exchange rate of dollars for euros fluctuated as follows:
December 5, 20X5:
$1.47 per euro
December 31, 20X5:
$1.46 per euro
January 11, 20X6:
$1.49 per euro
Global Technology is based in the U.S. and prepares its financial statements in dollars.
On December 5, 20X5, Global had two sales transactions with customers in Europe.
The first transaction was for $100,000.
Terms of sale provide for settlement in dollars.
Payment in full was received on January 11, 20X6.
The second transaction was for 100,000€.
Terms of sale provide for settlement in
euros. Payment in full was received on January 11, 20X6.
Prepare journal entries showing the sale (you may ignore cost of sales), year-end