Question
Providence Systems purchased inventory on account from Megaplex. The price was 150,000, and a yen was quoted at $0.0088. Providence paid the debt in yen
Providence Systems purchased inventory on account from Megaplex. The price was ¥150,000, and a yen was quoted at $0.0088. Providence paid the debt in yen a month later when the price of a yen was $0.0093. Providence
a. debited Inventory for $1,320.
b. recorded a foreign-currency transaction gain of $75.
c. debited Inventory for $1,395.
d. None of the above.
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
17th Edition
032459237X, 978-0324592375
