Julie Lindstrom is the bookkeeper for a small company that imports handcrafted items from foreign countries. Most of its suppliers are individuals who sell handmade crafts. All purchases are stated in the currency of the supplier's country but paid in U.S. dollars.
When Julie pays the suppliers for their goods, she must look up the exchange rate in effect at the time and convert the foreign currency into U.S. dollars.
Most of the suppliers are not knowledgeable about the current exchange rates. Julie calculates the amount of U.S. dollars owed to each supplier, but she then rounds down to the lower whole dollar. She reasons that this saves time for both parties by eliminating “cents” from all transactions. Is this the correct procedure? What would you say to Julie about her policy?