US Company Has the Following Receivables and Payables Denominated in Foreign

Essay

U.S. company has the following receivables and payables denominated in foreign currencies, prior to closing on December 31.
$$\begin{array} { | l | c | l | c | } \hline \text { Item } & \text { Current \$ balance } & { \text { Foreign currency balance } } & \text { December 31 spot rate } \\\hline \text { 1. Receivable } & \$ 125,840 & 100,000 \text { euros } & \$ 1.25 \\\hline \text { 2. Receivable } & 372,500 & 500,000 \text { Singapore dollars } & 0.75 \\\hline \text { 3. Payable } & 1,378,000 & 1,000,000 \text { pounds sterling } & 1.38 \\\hline \text { 4. Payable } & 68,000 & 500,000 \text { Hong Kong dollars } & 0.13 \\\hline\end{array}$$ Required
Prepare the adjusting entry the U.S. company makes at December 31 to update its receivables and payables. Show all calculations.