Question
10. On December 15, Year 1, ABC Company (a U.S. based company) sold merchandise to a foreign customer for 100,000 francs. Payment was received from
10. On December 15, Year 1, ABC Company (a U.S. based company) sold merchandise to a foreign customer for 100,000 francs. Payment was received from the customer on January 15, Year 2. Relevant exchange rates for the franc are:
| Date | US$ per franc |
| December 15, Year 1 | $0.23 |
| December 31, Year 1 | 0.25 |
| January 15, Year 2 | 0.20 |
Required: Prepare all journal entries (for sale, adjusting entry if any, and collection of sale) in connection with this sale assuming December 31 fiscal year end for ABC Company.
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Audit And Accounting Guide Employee Benefit Plans
Authors: American Institute Of Certified Public Accountants
1st Edition
0870515756, 978-0870515750
