Answer:
Exchange rate on September 15: 1 Crown = $0.61; 119,000 Crown = (119,000*$0.61) = $72,590.
September 30 = (119,000*0.65) = $77,350.
October 15 = (119,000*$0.60) = $71,400.
JOURNAL ENTRY
Date Account Debit Credit
15-Sep Account receivable $72,590
Sales $72,590
(Sale to a foreign customer for 119,000 crown Exchange rate = $0.61)
30-Sep Account receivable $4,760
Foreign currency exchange gain $4,760
($77,350-$72,590)
15-Oct Foreign currency exchange loss $5,950
Account receivable $5,950
($71,400-$77,350)
Cash $77,350
Accounts Receivable $77,350
