Question
Mozzie Ltd has a functional currency of A$. On 1 April 2023, Mozzie Ltd sells goods to a customer on credit terms for US$100 000.
Mozzie Ltd has a functional currency of A$. On 1 April 2023, Mozzie Ltd sells goods to a customer on credit terms for US$100 000. On 1 August 2023, cash is received from the customer to settle the invoice Exchange rates are: 1 April 2023 US$1.00 = A$1.30 30 June 2023 US$1.00 = A$1.50 1 August 2023 US$1.00 = A$1.40 What is the journal entry at the date of cash receipt on 1 August 2023?
a.
DR Cash $140 000 DR Foreign Exchange Loss $10 000 CR Accounts Receivable $150 000
b.
DR Cash $140 000 CR Foreign Exchange Gain $10 000 CR Accounts Receivable $130 000
c.
DR Cash $140 000 CR Accounts Receivable $140 000
d.
DR Cash $150 000 CR Foreign Exchange Gain $10 000 CR Accounts Receivable $140 000
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