Pile, Inc. purchased merchandise for 500,000 FC from a foreign vendor on November 30, 20X5. Payment in foreign currency is due January 31, 20X6. On the same day, Pile signed an agreement with a foreign exchange broker to buy 500,000 FC on January 31, 20X6. Exchange rates to purchase 1 FC are as follows: What will be the adjustment to the account payable included in the journal entry record on December 31, 20X5?

Question

Pile, Inc. purchased merchandise for 500,000 FC from a foreign vendor on November 30, 20X5. Payment in foreign currency is due January 31, 20X6. On the same day, Pile signed an agreement with a foreign exchange broker to buy 500,000 FC on January 31, 20X6. Exchange rates to purchase 1 FC are as follows:  What will be the adjustment to the account payable included in the journal entry record on December 31, 20X5?

Quizplus · Accepted Answer

11eb11de_92db_c43f_ad38_7fabbf8a7fa8_TB2014_00 Accounts payable will be reduced (debited) for $20,000

Pile, Inc Purchased Merchandise for 500,000 FC from a Foreign Vendor