ABC Supermarket operating in Turkey imports special cheese from a French company, on 1 October 20X1 for 100.000 when the exchange rate was 1 = 5 TL. Inventory has been sold BUT the accounts payable is still outstanding (not yet paid) by the end of accounting period as of 31.12.20X1. The closing exchange rate is 1 = 6 TL. The accounting record by the end of the accounting period includes

Select one:

Accounts Payable credit 500.000 TL

Merchandise Inventory debit 500.000 TL

Foreign Exchange Gains credit 100.000 TL

Accounts Payable credit 100.000 TL