Question 3 Chrysler Exporters Inc., a US wholesaler is engaged in foreign trade. The following transactions were recorded: On December 1, 2020, Chrysler Exporters Inc., purchased merchandise from...

Prepare the journal entries to track the accounts payable and the forward contract on December 31, 2020, for Chrysler Exporters Inc. financial statements.

Extracted text: Question 3 Chrysler Exporters Inc., a US wholesaler is engaged in foreign trade. The following transactions were recorded: On December 1, 2020, Chrysler Exporters Inc., purchased merchandise from Chang's Ltd a I. Japanese manufacturer. The invoice was for ¥500,000, payable on April 1, 2021. On the same day, Chrysler Exporters Inc. accepted a forward exchange contract (forward II. contract) to buy ¥500,000 on April 1, 2021. On April 1, 2021, the ¥500,000 was delivered on the contract and the supplier was settled. The spot rates and the forward rates were as follows: III. IV. Date Spot rate Forward rate for delivery (¥) on April 1, 2021 December 1, 2020 $0.0084 $0.0089 December 31, 2020 0.0083 0.0088 April 1, 2021 0.0092