Answer:
APU
Journal Entries:
December 1, 2017:
Debit Accounts receivable $2,320,000
Credit Sales Revenue $2,320,000
To record the sale of goods on account.
March 1, 2018:
Debit Cash $2,384,000
Credit Accounts receivable $2,320,000
Credit Gain from Foreign Exchange $64,000
To record the receipt of cash, including the gain from forex.
Explanation:
a) Data and Analysis:
December 1, 2017: Accounts receivable $2,320,000 Sales Revenue $2,320,000 (1,600,000 * $1.45)
March 1, 2018: Cash $2,384,000 (1,600,000 * $1.49) Accounts receivable $2,320,000 Gain from Foreign Exchange $64,000 (1,600,000 * ($1.49 - $1.45)
