RWB Corporation, a U. S. based company, bought inventory from a German company on June...
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Accounting
RWB Corporation, a U. S. based company, bought inventory from a German company on June 5 for 12,000 euros, when $1 was equal to 1.20 euros. The company settled its payable with 12,000 euros on August 4 when $1 was equal to 1.25 euros. RWBs measurement currency is the U. S. dollar. RWB Corporation:
Question 7 options:
a)
has an economic gain on the transaction.
b)
should record the inventory for $9,600.
c)
is exposed to an economic loss on the transaction.
d)
should record the inventory for 12,000 euros.
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