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Company XYZ, a domestic entity, sold goods to a British company on 6/10 with the transaction denominated in Pounds. The sales price of the goods
Company XYZ, a domestic entity, sold goods to a British company on 6/10 with the transaction denominated in Pounds. The sales price of the goods was 200,000, and the cost of the goods was $80,000. The receivable is payable in full on 6/10, and Company XYZ prepares their financials monthly. Relevant exchanges rates are 6/10 1 = $1.30, 6/30 1 = $1.25, and 7/10 1 = $1.35. Based on this information, how much would accounts receivable need to be revalued by on 6/30? a) $4,000 decrease Ob) $10,000 decrease O c) $0 d) $10,000 increase
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