A U.S. company sells goods to a customer in Canada on October 20, 2020, at a price of C$100,000. The company receives payment from the customer, in Canadian dollars, on February 1, 2021, and immediately converts the payment to U.S. dollars. The U.S. company has a December 31 year-end. Spot rates ($/C$) are as follows:
$$\begin{array} { | l | c | }
\hline & \text { Spot Rate } \
\hline \text { October 20, 2020 } & \$ 0.815 \
\hline \text { December 31, 2020 } & 0.800 \
\hline \text { February 1, 2021 } & 0.819 \
\hline
\end{array}$$ Required
Prepare the U.S. company's journal entries to record these events.

Question

A U.S. company sells goods to a customer in Canada on October 20, 2020, at a price of C$100,000. The company receives payment from the customer, in Canadian dollars, on February 1, 2021, and immediately converts the payment to U.S. dollars. The U.S. company has a December 31 year-end. Spot rates ($/C$) are as follows:
 $$\begin{array} { | l | c | } 
\hline & \text { Spot Rate } \
\hline \text { October 20, 2020 } & \$ 0.815 \
\hline \text { December 31, 2020 } & 0.800 \
\hline \text { February 1, 2021 } & 0.819 \
\hline
\end{array}$$ Required
Prepare the U.S. company's journal entries to record these events.

Quizplus · Accepted Answer

The Answer of A U.S. company sells goods to a customer in Canada on October 20, 2020, at a price of C$100,000. The company receives payment from the customer, in Canadian dollars, on February 1, 2021, and immediately converts the payment to U.S. dollars. The U.S. company has a December 31 year-end. Spot rates ($/C$) are as follows:
 $$\begin{array} { | l | c | } 
\hline & \text { Spot Rate } \
\hline \text { October 20, 2020 } & \$ 0.815 \
\hline \text { December 31, 2020 } & 0.800 \
\hline \text { February 1, 2021 } & 0.819 \
\hline
\end{array}$$ Required
Prepare the U.S. company's journal entries to record these events.

A US Company Sells Goods to a Customer in Canada on on October