Question
Alabaster Ltd has a functional currency of A$. On 15 June 2023, Alabaster Ltd purchases goods on credit terms from a New Zealand supplier for
Alabaster Ltd has a functional currency of A$. On 15 June 2023, Alabaster Ltd purchases goods on credit terms from a New Zealand supplier for NZ$200 000. Alabaster Ltd pays the invoice in full on 20 July 2023. Exchange rates are: 15 June 2023 NZ$1.00 = A$1.05 30 June 2023 NZ$1.00 = A$0.93 20 July 2023 NZ$1.00 = A$0.98 What is the journal entry to record the purchase transaction on 15 June 2023?
a.DR Inventories $210 000
CR Accounts Payable $210 000
b.DR Inventories $190 476
CR Accounts Payable $190 476
c.DR Inventories $200 000
CR Accounts Payable $200 000
d.DR Accounts Receivable $210 000
CR Sales $210 000
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