Angelas Artwork Inc. (Angelas) recently entered into a contract to supply artwork to a U.S. company. The controller of Angelas is not experienced with translation of foreign currency transactions and has made the following entries to record sales to the U.S. company without factoring in the impact of foreign currency on the transactions: To record sales in USD:

DR		Accounts receivable	$156,000
	CR	Sales		$156,000

To record the collection of a portion of the receivable:

DR		Cash (USD)	$90,000
	CR	Accounts receivable		$90,000

To record the conversion of a portion of USD cash to CDN cash:

DR		Cash (CDN)	$78,000
	CR	Sales		$18,000
	CR	Cash (USD)		$60,000

Sales were made evenly over a period when the exchange rate was US$1.00 = C$1.33, and the exchange rate at the end of the fiscal year was US$1.00 = C$1.25. What is the correct adjustment to accounts receivable?

Question 1 options:

	a) $39,000 debit to accounts receivable
	b) $16,500 debit to accounts receivable
	c) $16,500 credit to accounts receivable
	d) $39,000 credit to accounts receivable Angelas Artwork Inc. (Angelas) recently entered into a contract to supply artwork to a U.S. company. The controller of Angelas is not experienced with translation of foreign currency transactions and has made the following entries to record sales to the U.S. company without factoring in the impact of foreign currency on the transactions: To record sales in USD: DR Accounts receivable $156,000 CR Sales $156,000 To record the collection of a portion of the receivable: DR Cash (USD) $90,000 CR Accounts receivable $90,000 To record the conversion of a portion of USD cash to CDN cash: DR Cash (CDN) $78,000 CR Sales $18,000 CR Cash (USD) $60,000 Sales were made evenly over a period when the exchange rate was US$1.00 = C$1.33, and the exchange rate at the end of the fiscal year was US$1.00 = C$1.25. What is the correct adjustment to accounts receivable? Question 1 options: a) $39,000 debit to accounts receivable b) $16,500 debit to accounts receivable c) $16,500 credit to accounts receivable d) $39,000 credit to accounts receivable