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A US company, an exporter, sells merchandise to a customer in Germany on December 1, 2020, for 25000. A receipt is due on January 31,
A US company, an exporter, sells merchandise to a customer in Germany on December 1, 2020, for 25000. A receipt is due on January 31, 2021, and the US Company prepares financial statements on December 31, 2020. At the transaction date (December 1, 2020), the spot rate for the immediate exchange of foreign currencies indicates that 1 is equivalent to $ 0.98 Assume that on December 31, 2020, the spot rate for euros is 1 = $.95 The following journal entry would be recorded as of :December 1, 2020
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