Question
On November 1 , 2017, Square Company sold inventory to a foreign customer. The account will be settled on March 1 with the receipt of
On November 1 , 2017, Square Company sold inventory to a foreign customer. The account will be settled on March 1 with the receipt of 250,000 foreign currency units (FCU). On November 1, Square also entered into a forward contract to hedge the exposed asset. The forward rate is $0.90 per unit of foreign currency. Square has a December 31 fiscal year-end. Spot rates on relevant dates were:
| Date | Per Unit of Foreign Currency |
| November 1 | $0.93 |
| December 31 | $0.91 |
| March 1 | $0.94 |
The entry to record the forward contract is:
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Clinical Audit In Oral Pathology Laboratory A Wide Range Of Quality Improvement
Authors: Rudra Bhardwaj, Narendra Nath Singh, Sherin Nair
1st Edition
3330343052, 978-3330343054
