Question: 1. On March 1, 2011, a U.S. company made a credit sale requiring payment in 30 days from a Malaysian company, Hamac Sdn. Bhd., in 20,000 Malaysian ringgits. Assuming the exchange rate between Malaysian ringgits and U.S. dollars is $0.6811 on March 1 and $0.6985 on March 31, prepare the entries to record the sale on March 1 and the cash receipt on March 31.
2. If a short-term investment in available-for-sale securities costs $6,780 and is sold for $7,500, how should the difference between these two amounts be recorded?