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 for the settlement of the contracts on April 1, 2021

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