Use the following information on the U.S. dollar value of the euro to answer bellow Questions
On November 16, 2019, a U.S. company makes a sale to a customer in Germany. Under the sale terms, the customer will pay the company €100,000 on March 16. On November 16, the company also enters a forward contract to sell €100,000 on March 16, 2020. On March 16, the company receives €100,000 from the customer and sells it using the forward contract. The company's accounting year ends December 31.
-At what amount will the company report sales revenue on its 2019 income statement?
A) $124,800
B) $126,000
C) $125,500
D) $125,000
Correct Answer:
Verified
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