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Question - Behd Company, a U.S. firm, sold some of its inventory to Edinburgo Company, a company based in Scotland, on November 27, 20X4, when the local currency unit (the pound Sterling, "GBP") was trading at $1.64. The sales agreement called for Edinburgo to pay 140,000 GBP on January 26, 20X5.
Additional exchange rates are shown below:
December 31, 20X4 $1.7125
January 26, 20X5 $1.7220
Record all journal entries for Behd Company on 11/27/X4, 12/31/X4 and 1/26/X5. Be sure to identify floating amounts with the proper foreign currency (i.e. GBP).
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