On March 1, Friedle Import-Export Company purchased merchandise costing 70,100 Mexican pesos. Payment was due, in pesos, on June 1. The exchange rates of pesos for $1 were as follows:
|March 1||$1 = 10.9 pesos|
|June 1||$1 = 11.4 pesos|
Round all answers to the nearest dollar.
1. What is the liability in dollars on March 1
2. What is the liability in dollars on June 1?
3. If Friedle pays on June 1, is there an exchange gain or loss? If so, how much is it?