If a parent company bills all sales to its foreign subsidiary in U.S. dollars and is to be repaid in the same number of U.S. dollars, the Purchases ledger account in the subsidiary's trial balance is remeasured to U.S. dollars by use of the:

Question

Quizplus · Accepted Answer

The subsidiary's purchases ledger account is remeasured to U.S. dollars using the amount recorded in the parent's accounting records for sales to the subsidiary, as the transactions are billed and repaid in U.S. dollars.

If a Parent Company Bills All Sales to Its Foreign