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May4 Sold clothing on account to a Mexican department store for $71,000 The exchange rate of the Mexican peso is $0.10, and the customer agrees to pay in dollar May13 Purchased inventory on account from a Canadian company at a price of Canadian $60,000. The exchange rate of the Canadian dollar price is $0.75, and payment will be in Canadian dollars. May20 Sold goods on account to an English firm for $80,000 British pounds. Payment will be in pounds, and the exchange rate of the pound is $ $1.50. May27 Collected from the Mexican company June21 Paid the Canadian company. The exchange rate of the Canadian dollars dollar $0.72 July 17 Collected from the English firm. The exchange rate of the British pound is $1.47. Record these transitions in Ralph Lauren's, journal, and show to report the net foreign-currency gain or loss on the income statement. How will what you learned in this problem help you structure international transactions?
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