Q7. Al Abril Aluminum LLC was asked to supply raw aluminum to United Kingdom LLC (UK), thus making export sales to foreign customer. However, the UK Company required Al Abril Aluminum to bill the sales in British pound (), thus creating foreign currency sales for Al Abril Aluminum. The first shipment of aluminum to UK company was invoiced at 500,000 with credit terms of 2/10, net 30 on December 1, 2019. Case A. If Al Abril Aluminum were a British company, pass the journal entry to record this sale in . Case B. Assume that Al Abril Aluminum is an Omani company that keeps its accounting records in Omani Riyals (OMR). Required: Write the journal entry to record this sale on December 1, 2019. The exchange rate at time of this transaction was 1 = OMR 1.60. Case C. Assume that Al Abril Aluminum is an Omani company that keeps its accounting records in Omani Riyals (OMR). Required: Write the journal entry to record this sale on December 1, 2019. The exchange rate at time of this transaction was 1 = OMR 1.60. By the time on Dec 8, 2019 UK company paid its account to Al Abril Aluminum, the value of had fallen to 1= OMR 1.50 You may use the following format to answer it: In the books of ....... Aluminum (if... Company) (in currency) Date Particulars........ .... Dr/Cr Debit Amount Case Credit Amount 1 Q7. Al Abril Aluminum LLC was asked to supply raw aluminum to United Kingdom LLC (UK), thus making export sales to foreign customer. However, the UK Company required Al Abril Aluminum to bill the sales in British pound (), thus creating foreign currency sales for Al Abril Aluminum. The first shipment of aluminum to UK company was invoiced at 500,000 with credit terms of 2/10, net 30 on December 1, 2019. Case A. If Al Abril Aluminum were a British company, pass the journal entry to record this sale in . Case B. Assume that Al Abril Aluminum is an Omani company that keeps its accounting records in Omani Riyals (OMR). Required: Write the journal entry to record this sale on December 1, 2019. The exchange rate at time of this transaction was 1 = OMR 1.60. Case C. Assume that Al Abril Aluminum is an Omani company that keeps its accounting records in Omani Riyals (OMR). Required: Write the journal entry to record this sale on December 1, 2019. The exchange rate at time of this transaction was 1 = OMR 1.60. By the time on Dec 8, 2019 UK company paid its account to Al Abril Aluminum, the value of had fallen to 1= OMR 1.50 You may use the following format to answer it: In the books of ....... Aluminum (if... Company) (in currency) Date Particulars........ .... Dr/Cr Debit Amount Case Credit Amount 1
