Questions: Peerless Corporation (a U.S.-based company) made a sale to a foreign customer on September 15, for 111,000 crowns. It received payment on October 15. The following exchange rates for 1 crown apply: Date U.S. Dollar September 15 Crown per 0.59 September 30 0.64 October 15 0.62 Required: Prepare all journal entries for Peerless Corporation in connection with this export sale, assuming that the company closes its books on September 30 to prepare interim financial statements. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet (1) 2 3 4 Record the entry for changes in the exchange rate. Note: Enter debits before credits. S.No/Date Account Title Debit Credit 09 / 30 Accounts Receivable (crowns) Foreign Exchange Gain or Loss

To prepare the journal entries for Peerless Corporation in connection with the export sale, we need to account for the sale, the changes in the exchange rate, and the receipt of payment. Here are the steps and the corresponding journal entries:

1. Record the sale on September 15:

   • The sale is made for 111,000 crowns, and the exchange rate on September 15 is $0.59 per crown.
   • The amount in U.S. dollars is 111,000 crowns * $0.59 = $65,490.

   Journal Entry: \[ \begin{array}{|c|l|l|c|} \hline \text{Date} & \text{Account Title} & \text{Debit} & \text{Credit} \\ \hline 09/15 & \text{Accounts Receivable (crowns)} & \$65,490 & \\ \hline 09/15 & \text{Sales Revenue} & & \$65,490 \\ \hline \end{array} \]

2. Adjust for changes in the exchange rate on September 30:

   • The exchange rate on September 30 is $0.64 per crown.
   • The new value of the receivable in U.S. dollars is 111,000 crowns * $0.64 = $71,040.
   • The difference due to the change in the exchange rate is $71,040 - $65,490 = $5,550.

   Journal Entry: \[ \begin{array}{|c|l|l|c|} \hline \text{Date} & \text{Account Title} & \text{Debit} & \text{Credit} \\ \hline 09/30 & \text{Accounts Receivable (crowns)} & \$5,550 & \\ \hline 09/30 & \text{Foreign Exchange Gain} & & \$5,550 \\ \hline \end{array} \]

3. Record the receipt of payment on October 15:

   • The exchange rate on October 15 is $0.62 per crown.
   • The amount received in U.S. dollars is 111,000 crowns * $0.62 = $68,820.
   • The difference due to the change in the exchange rate from September 30 to October 15 is $68,820 - $71,040 = -$2,220 (a loss).

   Journal Entry: \[ \begin{array}{|c|l|l|c|} \hline \text{Date} & \text{Account Title} & \text{Debit} & \text{Credit} \\ \hline 10/15 & \text{Cash} & \$68,820 & \\ \hline 10/15 & \text{Foreign Exchange Loss} & \$2,220 & \\ \hline 10/15 & \text{Accounts Receivable (crowns)} & & \$71,040 \\ \hline \end{array} \]

These journal entries reflect the sale, the adjustments for changes in the exchange rate, and the receipt of payment.