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Company D, a domestic entity, sold goods to a British company on 5/10 with the transaction denominated in Pounds. The sales price of the goods
Company D, a domestic entity, sold goods to a British company on 5/10 with the transaction denominated in Pounds. The sales price of the goods was 250,000, and the cost of the goods was $100,000. The receivable is payable in full on 6/10, and Company D prepares their financials monthly. Relevant exchanges rates are 5/10 1 = $1.30, 5/31 1 = $1.40, and 6/10 1 = $1.45. Based on this information, how much would accounts receivable need to be revalued by on 6/10?
a. $25,000 increase
b. $0
c. $25 decrease
d. $12,500 increase
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