Problem
New Colony Corporation (a U.S. company) made a sale to a foreign customer on September 15, 2015, for 100,000 foreign currency units (FCU). It received payment on October 15, 2015. The following exchange rates for 1 FCU apply:
September 15, 2015 $ 0.40
September 30, 2015 0.42
October 15, 2015 0.37
Prepare all journal entries for New Colony in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the entry for sales on credit.
2. Record the entry for changes in the exchange rate.
3. Record the entry for changes in the exchange rate.
4. Record the entry for receipt of payment.