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On November 29, 20x1, ABC Co. placed a non-cancellable purchase order for the importation of a machine with a purchase price of €20,000 from a company based in France. The contract term is FOB shipping point. The machine was shipped on December 1, 20x1 and was received by ABC on December 15, 20x1. The purchase price was settled on January 3, 20x2. The following are the exchange rates:
November 29, 20x1...............................................?55:€1December 1, 20x1.................................................?58:€1December 15, 20x1...............................................?57:€1December 31, 20x1...............................................?60:€1January 3, 20x2....................................................?61:€1 Requirement:
Problem 1: Provide the journal entries.
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