A U.S. Corp. sold equipment to a French firm on July 1, 2020, when a Euro cost $0.25. The U.S. firm will be required to receive from the French manufacturer 150,000 Euros on July 1, 2020. the exchange rate on 31/12/2020 expected to be 1 Euro = $ 26. The journal entry on July 1,2020 includes:

Select one:

a.

Debit to accounts payable $ 37,500.

b.

Debit to accounts receivable $ 37,500.

c.

Credit to accounts payable $ 37,500.

d.

Debit to cash $ 37,500.

On 15/8/2020, department A that manufactures product Alpha, transfers 20,000 units of its product @ $50 per unit, to department B. The production cost to department A is $45 per unit, the journal entry in the books of downstream to record the receipt of 20,000 units, from department A is:

a.

Debit to Intercompany Accounts Payable $900,000 and credit Finished Goods Inventory $900,000.

b.

Debit to Intercompany Accounts Payable $1,000,000 and credit Finished Goods Inventory $1,000,000.

c.

Debit to Finished Goods Inventory $900,000 and credit Intercompany Accounts Payable $900,000.

d.

Debit to Finished Goods Inventory $1,000,000 and credit Intercompany Accounts Payable $1,000,000.