Question
On March 1, Phil Co., a U.S. company, sold and delivered merchandise on a thirty-day account to Catrin Co. , an Italian corporation, for 100,000
On March 1, Phil Co., a U.S. company, sold and delivered merchandise on a thirty-day account to Catrin Co. , an Italian corporation, for 100,000 euros. On April 1Catrin paid Phil in full. Relevant currency exchange rates are the follows:
| March 1 | April 1 | |||
| Spot Rate | $1= | 0.988 | $1= | 0.995 |
| 30-day forward rate | $1= | 0.99 | $1= | 1 |
What amount should Phil Co record on March 1 as account receivable for its from Catrin Co?
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Financial Accounting The Impact On Decision Makers
Authors: Gary A. Porter, Curtis L. Norton
6th Edition
0324655231, 978-0324655230
