Sales Denominated in Foreign Currency Trend Corporation sold products to a foreign company with the sates price stated in FCU (foreign currency units). The products were delivered on December 1, 2001, at an agreed-upon price of 250,000 FCU. Payment is to be received on February 1, 2002. Trend Corporation’s year-end is December 31, 2001.

Relevant exchange rates are as follows:

a. What sale price should Trend Corporation record at December 1, 2001?

b. What is the value of Trend’s accounts receivable at December 31, 2001?

c. What amount of gain or loss on foreign currency transactions should Trend record at December 31, 2001?

d. What is the value of the payment received at February 1, 2002?

e. What amount of gain or loss on foreign currency transactions should Trend record at February 1, 2002?

f. Was Trend Corporation better off or worse off from haying received payment on February 1, 2002, rather than on December 1, 2001? By what amount?

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December 1, 2001 December 31, 2001 February 1, 2002 = 1 FCU $4.10 U.S. IFCU $3.82 U.S. 1 FCU = $4.07 U.S.