Account for foreign-currency gains and losses
Response to the following problem:
Suppose Tex-Cola Corp. sells soft-drink syrup on account to a Russian company on September 12. Tex-Cola Corp. agrees to accept 400,000 Russian rubles. On the date of sale, the ruble is quoted at $0.34. Tex-Cola Corp. collects half the receivable on October 18 when the ruble is worth $0.31. Then on November 15, when the foreign-exchange rate of the ruble is $0.36, Tex-Cola Corp. collects the final amount. Journalize these three transactions for Tex-Cola Corp. Ignore cost of goods sold.