Blue & Green, Inc. sold merchandise for 100,000 FC to a foreign vendor on December 1, 20X5. Payment in FC is due January 31, 20X6. On December 1, 20X5, Blue & Green purchased an option for $500 to sell 100,000 FC at $1.45 on January 30, 20X6. Exchange rates to sell 1 FC are as follows:
Fiscal Year End is 12/31.
Required:
Prepare the journal entries for December 1 through January 31 related to the events described above. Ignore Cost of Goods Sold.

Question

Blue & Green, Inc. sold merchandise for 100,000 FC to a foreign vendor on December 1, 20X5. Payment in FC is due January 31, 20X6. On December 1, 20X5, Blue & Green purchased an option for $500 to sell 100,000 FC at $1.45 on January 30, 20X6. Exchange rates to sell 1 FC are as follows:  
Fiscal Year End is 12/31.
Required:
Prepare the journal entries for December 1 through January 31 related to the events described above. Ignore Cost of Goods Sold.

Quizplus · Accepted Answer

The Answer of Blue & Green, Inc. sold merchandise for 100,000 FC to a foreign vendor on December 1, 20X5. Payment in FC is due January 31, 20X6. On December 1, 20X5, Blue & Green purchased an option for $500 to sell 100,000 FC at $1.45 on January 30, 20X6. Exchange rates to sell 1 FC are as follows:  
Fiscal Year End is 12/31.
Required:
Prepare the journal entries for December 1 through January 31 related to the events described above. Ignore Cost of Goods Sold.