Exporting Transactions-Journal Entries Jung Farms Exports Wheat to Germany. in the Space Provided

question 38

Essay

Exporting transactions-journal entries
Jung Farms exports wheat to Germany. In the space provided below, prepare journal entries to record the following events.
Nov. 15, 2010: Sold wheat to a German restaurant chain at a price of 2 million euros, due in 90 days. The current exchange rate is $0.80 U.S. dollars per euro. (Jung uses the periodic inventory method.)
Dec. 3, 2010: Jung made a year-end adjusting entry relating to the account receivable from the German restaurant chain. The exchange rate at year-end is $0.85 U.S. dollars per Euro.
Feb. 15, 2011: Received a check for $1,640,000 from the InterContinental Bank in full settlement of the receivable from the German restaurant chain. The exchange rate at this date is $0.82 U.S. dollars per euro.

Analyze the implications of return on investment (ROI) on pricing strategies.

Learn how to calculate the target cost per unit for new products.

Understand value-based pricing and its application in setting product prices.

Grasp the principles of cost-plus pricing using absorption costing.

---

Definitions:

Federal Law

The body of law created by the federal government of a country, which applies to all its citizens and territories.

Constitutional Law

The general limits and powers of a government as interpreted from its written constitution.

Common Law

A legal framework that relies on court rulings and past case decisions instead of laws passed by legislation.

Quasi-Contracts

Quasi-contracts are legal obligations imposed by courts in order to prevent unjust enrichment, even though no actual contract exists.