Question
On April 1, a US-based manufacturer sells equipment to a British importer, with payment due on June 30. The sale is denominated in pounds sterling
On April 1, a US-based manufacturer sells equipment to a British importer, with payment due on June 30. The sale is denominated in pounds sterling 250,000. Assume the following exchange rates between the US dollar and the British pound sterling:
Spot April 1 1.6290
Three-month forward April 1 1.6095
Spot April 30 1.6275
Spot May 31 1.6005
Spot June 30 1.5950
Assuming that no forward contract is entered into, what amount would be the debit to Accounts Receivable and credit to Sales on April 1?
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Auditing And Assurance Services
Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau
8th International Edition
1260570517, 978-1260570519
