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1. On May 20, 2022, when the spot rate is $1.18/, a U.S. company buys merchandise from a supplier in Italy, at a cost of
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On May 20, 2022, when the spot rate is $1.18/, a U.S. company buys merchandise from a supplier in Italy, at a cost of 100,000. The spot rate is $1.15/ on June 30, the companys year-end. Payment of 100,000 is made on July 30, 2022, when the spot rate is $1.22/. The company sells the merchandise to a U.S. customer for $150,000 in August of 2022.
What amount does the company report as accounts payable on its June 30, 2022, balance sheet?
Select one:
a. $115,000
b. $100,000
c. $118,000
d. $122,000
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