Question
On November 1, 20X4, American Company sold inventory to a foreign customer. The account was settled on March 1 with the receipt of 450,000 foreign
On November 1, 20X4, American Company sold inventory to a foreign customer. The account was settled on March 1 with the receipt of 450,000 foreign currency units. American has a December 31 fiscal year-end. Spot rates on relevant dates were:
Date 1 Foreign Currency Unit =
November 1 $ 0.75 U.S. dollars
December 31 $ 0.80 U.S. dollars
March 1 $ 0.74 U.S. dollars
Prepare the journal entry on December 31.
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Auditing Theory And Practice
Authors: Jerry R. Strawser, Robert H. Strawser, Roger H. Hermanson
9th Edition
0873939336, 9780873939331
