Wilson Inc Required:
Prepare the Necessary Journal Entries to Record This Purchase

question 16

Essay

Wilson Inc.purchased merchandise on account from a French supplier on December 1, 2010.This transaction was for 75, 000 euros.Wilson's accounting year ends December 31.Payment was made on January 31, 2011.The exchange rates during this period were as follows:
$\begin{array}{ll}\text { December } 1 & \$ 1.10 / \text { euro } \\\text { December } 31 & 1.16 / \text { euro } \\\text { J quuary } 31 & 1.14 / \text { euro }\end{array}$ Required:
Prepare the necessary journal entries to record this purchase and subsequent payment.

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Definitions:

Hazardous Materials

Substances that pose risks to public health, safety, or the environment if not properly controlled or contained.

Contingent Liabilities

Potential obligations that may occur depending on the outcome of a future event.

Environmental Protection Agency

A federal agency charged with protecting human health and the environment by writing and enforcing regulations based on laws passed by Congress.

Product Warranty

A promise or assurance given by a manufacturer or seller to a buyer that a product is free from defects and will perform as specified for a certain period of time.