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Question - On September 1, 2014, MX Company purchased merchandise from AX Company of Japan for 20,000,000 yen payable on October 1, 2014. The spot rate for yen was $0.0079 on September 1 and the spot rate was $0.0077 on October 1. The purchase was paid on October 1, 2014.
Required -
1. What journal entry did MX record on September 1, 2014?
2. What journal entry did MX record on October 1, 2014?
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