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Reseda Co. records its transactions in U.S. dollars. A purchase of goods resulted in a payable denominated in Euros, and a sale of goods resulted in a receivable denominated in Japanese Yen.
Reseda recorded a foreign exchange loss on collection of the receivable and an exchange gain on settlement of the payable. The exchange rates are expressed as so many units of foreign currency to one dollar.
Problem 1: Did the number of foreign currency units exchangeable for a dollar increase or decrease between the contract and settlement dates?
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