Essay
Bulldog Enterprise, a U.S. firm, agreed on February 1, 20X1, to buy gears from a Mexican firm for 75,000 pesos. Delivery is scheduled for May 1, 20X1, with payment due at that time. On February 1, 20X1, Bulldog also acquired a forward contract to buy 75,000 pesos on May 1, 20X1. (The gears represent inventory to the U.S. firm.) Bulldog's year end is March 31.
Required:
Prepare the journal entries necessary for Bulldog Enterprise to record this activity. Assume that the following exchange rates existed: 
Discount rate 
15%
Correct Answer:
Verified
Correct Answer:
Verified
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