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Question - Medwear Corporation is a multinational dealer of uniforms for medical personnel. Medwear is headquartered in the United States and uses U.S. dollars as its functional currency. On March 17, Medwear sells a large quantity of uniforms to a hospital in Brussels, Belgium for exactly 267,000 euros to be paid in 45 days. On the date of the sale, the exchange rate was $1.32 for every euro.
a. Record this transaction for Medwear on March 17 assuming that the uniforms are purchased on account.
b. On March 31, Medwear prepares financial statements. On this date, the exchange rate is $1.27 per euro. Record the necessary adjusting entry for Medwear on this date.
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