In evaluating the acquisition, Emily and Richard are a little concerned. Faster is expected to make a 500,000 yen sale to a Japanese company with credit terms of net 150 days. The yen has been falling against the dollar, so they are expecting a loss.
Write a memo with the following information:
• What is the entry to record the 500,000 yen sale on Faster's books assuming the yen is 0.92 against the dollar?
• How can Emily and Richard mitigate the foreign currency loss?