1. Prepare the journal entry for USA Posh Puppies to reflect the above accounting events.
2. Prepare the adjusting journal entries necessary for December 31, 20x8.
3. Prepare the journal entries to record the payment of the invoice to Bling and Things and to record the receipt of the Divine Dogs payment.

Date Description Amount Amount
Dec 20x8 Purchases $ 480 Accounts payable $ 480 Purchase of 10,000 collars @ 7,500 pesos equivalent to US$ 480 @ $0.064 per peso Dec 20x8 Accounts receivables $ 1,215 Sales $ 1,215 Sale of 1,000 rhinestone-studded collars @ 1,500 Canadian dollars equivalent to US$ 1,215 @ $0.810 per Canadian dollar Dec 20x8 Merchandise inventory $ 432 Purchases $ 432 Adjustment entry to record closing stock Dec 20x8 Cost of goods sold $ 48 Purchases $ 48 Transfer of balance in Purchases account to cost of goods sold Dec 20x8 Forex loss $ 60 Accounts payable $ 45 Accounts receivable $ 15 Revaluation of accounts receivables and payables at closing rate and recording resultant forex loss Jan 20x9 Accounts payable $ 525 Forex loss $ 19 Bank $ 544 Payment of 7,500 pesos @ $0.0725 to Bling and Things and recording resultant currency loss Jan 20x9 Bank $ 1,230 Accounts receivable $ 1,200 Forex gain $ 30 Receipt of Canadian dollars 1,500 @ $0.82 from Divine Dogs and recording resultant currency gain Merchandise inventory Units Value
Purchases $ 10,000 $ 480
Sales $ 1,000
Closing stock $