Auziz Limited, an Australian company, purchased equipment from California Limited, a US company, on credit terms for US$600 000. At the transaction date, the exchange rate was US$1 = A$1.25. The journal entry recorded by Auziz Limited for this purchase would be:

Select one:

DR Receivable from California Limited $480 000; CR Cash $480 000

DR Machinery $480 000; CR Payable to California Limited $480 000

DR Machinery $750 000; CR Cash $750 000

DR Machinery $750 000; CR Payable to California Limited $750 000