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Company BBB updates its books monthly. In February it carried out a credit purchase for the amount of $8,000. At the end of the month,
Company BBB updates its books monthly. In February it carried out a credit purchase for the amount of $8,000. At the end of the month, it was registered as 8,000. The purchase will be paid at the end of April.
What entry would the company have to post at the time of payment if we know that the exchange rate on 03/31 is 1 = $1.25 and on 04/30 it is 1= $1.40?
Select one:
a. None of the other options are correct
b.
Account entry | Debit | Credit |
(572) Cash in banks (768) Exchange gains (4004) Trade payables, foreign currency | 6,400 | 5,714.29 685.71 |
c. I don't know the answer
d.
Account entry | Debit | Credit |
(572) Cash in banks (668) Exchange losses (4004) Trade payables, foreign currency | 4.800 8.000 | 11.200 |
e.
Account entry | Debit | Credit |
(572) Cash in banks (768) Exchange gains (4004) Trade payables, foreign currency | 8,000 | 5,714.29 2,285.71 |
URGENT please
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