On November 9, 2006, Usa Corporation, a U.S. multinational enterprise that prepares monthly financial statements, sold merchandise costing $20,000 to a foreign customer on 30-day open account for 50,000 local currency units (LCU). Usa employs the perpetual inventory system. On December 9, 2006, Usa received a draft for LCU50,000 from the foreign customer. Spot rates for the LCU during the remainder of 2006 were as follows:
Prepare journal entries for Usa Corporation's transactions with the foreign customer. Omit explanations.

Question

On November 9, 2006, Usa Corporation, a U.S. multinational enterprise that prepares monthly financial statements, sold merchandise costing $20,000 to a foreign customer on 30-day open account for 50,000 local currency units (LCU). Usa employs the perpetual inventory system. On December 9, 2006, Usa received a draft for LCU50,000 from the foreign customer. Spot rates for the LCU during the remainder of 2006 were as follows:
  Prepare journal entries for Usa Corporation's transactions with the foreign customer. Omit explanations.

Quizplus · Accepted Answer

The Answer of On November 9, 2006, Usa Corporation, a U.S. multinational enterprise that prepares monthly financial statements, sold merchandise costing $20,000 to a foreign customer on 30-day open account for 50,000 local currency units (LCU). Usa employs the perpetual inventory system. On December 9, 2006, Usa received a draft for LCU50,000 from the foreign customer. Spot rates for the LCU during the remainder of 2006 were as follows:
  Prepare journal entries for Usa Corporation's transactions with the foreign customer. Omit explanations.