Importing Transactions-Journal Entries Striking Furs Imports Furs from Canada.In the Space Provided Below,prepare

question 9

Essay

Importing transactions-journal entries
Striking Furs imports furs from Canada.In the space provided below,prepare journal entries to record the following events.
Dec.11,2017: Purchased furs from Capable Trappers,Ltd. ,a Canadian corporation,at a price of 25,000 Canadian dollars,due in 60 days.The current exchange rate is $0.85 U.S.dollars per Canadian dollar.(Striking uses the perpetual inventory method;debit the Inventory account. )
Dec.31,2017: Striking made a year-end adjusting entry relating to the account payable to Capable Trappers.The exchange rate at year-end is $0.89 U.S.dollars per Canadian dollar.
Feb.9,2018: Issued a check for $21,750 (U.S.dollars)to National Bank in full settlement of the liability to Capable Trappers,Ltd.The exchange rate at this date is $0.87 U.S.dollars per Canadian dollar.

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Definitions:

Free Trade

The economic policy of not discriminating against imports from and exports to foreign jurisdictions, allowing goods to move across borders without regulatory or tariff barriers.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors, underpinning the rationale for international trade.

Job Losses

The act of becoming unemployed due to factors like economic downturns, restructuring, or automation.

Job Gains

Increases in the number of jobs available in an economy, indicating employment growth and potentially a strengthening economic condition.