Question
ANSWER STEP BY STEP On February 1, 2021, Amal LLC., an Emarti company, made a sale and shipped goods to Jan Inc, a Danish customer,
ANSWER STEP BY STEP
On February 1, 2021, Amal LLC., an Emarti company, made a sale and shipped goods to Jan Inc, a Danish customer, for100,000 AED, It is agreed that Jan Inc will pay the total amount in Danish Krone on May 1, 2021.
The exchange (spot) rate as of February 1, 2021, was 2 Krone for 1 Dirham.
The exchange (spot) rate as of May 1, 2021 was 2.5 Krone for 1 Dirham.
Required:
1. Journlize February's and May's transactions for Amal LLC.,
2. Advise Amal LLC., how loss on foreign exchange can be avioded.
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Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
10th Edition
1111822239, 324639767, 9781111822231, 978-0324639766
