Question
If a U. S. Company purchases inventory on account for $32,000 euros from a British Company when the exchange rate is $1 to $1.28 euros,
If a U. S. Company purchases inventory on account for $32,000 euros from a British Company when the exchange rate is $1 to $1.28 euros, how would the British Company recognize the sales revenue and the accounts receivable?
Question 12 options:
?sales revenue of $32,000 and accounts receivable of $32,000 | |
?sales revenue of $25,000 and accounts receivable of $25,000 | |
?sales revenue of $32,000 and accounts receivable of $25,000 with a $7,000 foreign currency translation loss | |
?sales revenue of $25,000 and accounts receivable of $32,000 with a $7,000 foreign currency translation gain |
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