Question Completion Status: Question 9 2 points Save Answer HappyHeels Traders sells designer footwear for ladies. These shoes are imported from Milan. As most of its inventory requires importation, it is important that HappyHeels Traders is protected against currency risk. On 1 August 2020, HappyHeels Traders placed an order for the purchase of 1000 pairs of shoes, at 300 per pair. The order was not considered a firm commitment. On the same date, the entity entered into a five-month forward exchange contract with the bank, to cover any losses that may occur due to fluctuations in currency value. The seller shipped the stook free on board (FOB) on 31 October 2020. Both parties (the buyer and seller) agreed that the goods would be paid for on 31 December 2020. A total of 100 pairs of these imported shoes were sold by HappyHeels Traders for cash, on 5 November 2020, at a mark-up of 25% on cost price. A perpetual inventory system is in use. The entity has a 30 November reporting date. The following exchange rates apply: 1 August 2020 31 October 2020 30 November 2020 31 December 2020. Spot rate 1 = 16,00 1 =15,50 1 = 16,40 1 = R15,35 Forward rate 1 = 16,20 1 = 15,60 1 = R16,60 ROUND ALL FIGURES TO TWO DECIMAL PLACES. TYPE YOUR DECIMAL BY MEANS OF A COMMA: 123,45 How much is the 'Loss on FEC' to be recognised on 31 December2020? Question Completion Status: Question 9 2 points Save Answer HappyHeels Traders sells designer footwear for ladies. These shoes are imported from Milan. As most of its inventory requires importation, it is important that HappyHeels Traders is protected against currency risk. On 1 August 2020, HappyHeels Traders placed an order for the purchase of 1000 pairs of shoes, at 300 per pair. The order was not considered a firm commitment. On the same date, the entity entered into a five-month forward exchange contract with the bank, to cover any losses that may occur due to fluctuations in currency value. The seller shipped the stook free on board (FOB) on 31 October 2020. Both parties (the buyer and seller) agreed that the goods would be paid for on 31 December 2020. A total of 100 pairs of these imported shoes were sold by HappyHeels Traders for cash, on 5 November 2020, at a mark-up of 25% on cost price. A perpetual inventory system is in use. The entity has a 30 November reporting date. The following exchange rates apply: 1 August 2020 31 October 2020 30 November 2020 31 December 2020. Spot rate 1 = 16,00 1 =15,50 1 = 16,40 1 = R15,35 Forward rate 1 = 16,20 1 = 15,60 1 = R16,60 ROUND ALL FIGURES TO TWO DECIMAL PLACES. TYPE YOUR DECIMAL BY MEANS OF A COMMA: 123,45 How much is the 'Loss on FEC' to be recognised on 31 December2020