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On 1 April 2022, Collins Co, a company that uses dollar ($) as its functional currency, buys goods on credit from an overseas supplier, who
On 1 April 2022, Collins Co, a company that uses dollar ($) as its functional currency, buys goods on credit from an overseas supplier, who uses Kromits (Kr) as its functional currency. The invoice of the goods amounted to Kr54 000 The payment is still outstanding at the reporting date 30 June 2022 The prevailing exchange rates are: 1 April 2022 Kr 1,80 $1 30 June 2022 Kr 1,70 $1 How much will be the exchange difference on 30 June 2022? Loss $1 857 Profit $1 857 Loss $1 765 Profit $1 705
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