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Merchant Company had the following foreign currency transactions: 1. On November 1, 20X6, Merchant sold goods to a company located in Munich, Germany. The receivable was to be settled in European euros on February 1, 20X7, with the receipt of 230,000 by Merchant Company. 2. On November 1, 20x6, Merchant purchased machine parts from a company located in Berlin, Germany. Merchant is to pay 115,000 on February 1, 20X7 The direct exchange rates are as follows: November 1, 20x6 December 31, 20x6 February 1, 20x7 l- 0.60 1 0.62 1 0.58 Required: Record the T-accounts for the following transactions (Record the transactions in the given order.) . The November 1, 20X6, export transaction (sale). 2. The November 1, 20X6, import transaction (purchase). 3. The December 31, 20X6, year-end adjustment required of the foreign currency-denominated receivable of 230,000. 4. The December 31, 20X6, year-end adjustment required of the foreign currency-denominated payable of 115,000. 5. The February 1, 20X7, adjusting entry to determine the U.S. dollar-equivalent value of the foreign currency receivable on that date. 6. The February 1, 20X7, adjusting entry to determine the U.S. dollar-equivalent value of the foreign currency payable on that date 7. The February 1, 20X7, settlement of the foreign currency receivable. 8. The February 1, 20X7, settlement of the foreign currency payable.Foreign Currency Units () Accounts Receivable () Bal. 2/2/X7 Bal. 12/31/X6 Bal. 2/2/X7 Bal. 2/1/X7 Bal. 2/2/X7 Bal. 2/2/X7 Accounts Payable () Foreign Currency Transaction Loss Bal. 12/31/X6 Bal. 2/2X7 Bal. 2/1/X7 Bal. 2/2X7Foreign Currency Transaction Gain Bal. 2/2/X7 Bal. 2/2/X7 Bal. 2/2/X7

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