Problem: Texana Inc. imports inventory from Mexico. Prepare the journal entries for Texana to record the following transactions. Include any year-end adjustments.
Dec 21 Purchased inventory from Acquilla Co. for 500,000 Mexican pesos. The exchange rate was $0.0914 per peso. The credit terms were n/30.
Dec 31 The exchange rate was $0.0917 per peso.
Jan 20 Paid Acquilla Co. for the December 21 purchase. The exchange rate was $0.0920 per peso.