Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on october 15, 2021. abc company sold inventory to

On October 15, 2021. ABC Company sold inventory to a foreign customer. The account will...

80.2K

Verified Solution

Question

Accounting

image
On October 15, 2021. ABC Company sold inventory to a foreign customer. The account will be sorted on February 1 win the recept of $450,000 foreign currency units. On October 15, ABC entered into a forward contract to hedge the exposed asset. The forward rate is 30.70 per unit of foreign currency, ABC has a December 31 tiscal year-end. Spot rates on relevant dates were Date Per Unit of Foreign Currency October 15 $0.73 December 31 9076 February $0.74 What will be the adjusted balance in the Accounts Receivable account on December 31, and how much pain or loss was recorded as a result of the adjustment respectively A Receivable Balance 5337,500 and Gain of $9,000 Do Receivable Balce $319,500 and Loss of $9.000 Ochecovable Balance 5333,000 and Gain of $4,500 Ob Recevabin Balance $333,000 and Guin of $18.000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students