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On August 1, Central Computers, Inc. purchased thirty computer chips, on account, from a company located in Taiwan for 500,000 Taiwan dollars. On that date
On August 1, Central Computers, Inc. purchased thirty computer chips, on account, from a company located in Taiwan for 500,000 Taiwan dollars. On that date the Taiwan dollar is worth $0.040. On September 1, when the Taiwan dollar was worth $0.038, payment was made. The journal entry to record the payment on September 1 would include a: O debit to Accounts Payable $19,000. O debit to Foreign-Currency Transaction Loss $1,000. O credit to Foreign-Currency Transaction Gain $1,000. O credit to Cash $20,000
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