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Question - During December of the current year, Teletex Systems, Inc., a company based in Seattle, Washington, entered into the following transactions:
Dec. 10 Sold seven office computers to a company located in Colombia for 8,931,000 pesos. On this date, the spot rate was 390 pesos per U.S. dollar.
Dec. 12 Purchased computer chips from a company domiciled in Taiwan. The contract was denominated in 510,000 Taiwan dollars. The direct exchange spot rate on this date was $0.0409.
Required - Prepare journal entries to record the transactions above on the books of Teletex Systems, Inc. The company uses a periodic inventory system.
With your experience in this course, what do you see as the most difficult components for individual preparers to understand about filing taxes?
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