Foreign Currency Inventory Purchases On November 6 of Year 1, the company purchased inventory (on…

Foreign Currency Inventory Purchases

On November 6 of Year 1, the company purchased inventory (on account) from a supplier located in Indonesia. The purchase price is 100,000,000 Indonesian rupiah. On November 6, the exchange rate was 8,700 rupiah for 1 U.S. dollar. On December 31, the exchange rate was 10,000 rupiah for 1 U.S. dollar. The company paid the account on March 23 of Year 2.

On that date, the exchange rate was 9,100 rupiah for 1 U.S. dollar. Make the journal entries necessary on (1) November 6,(2) December 31,and (3) March 23. The company uses a perpetual inventory system.

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