On November 5, 2006, Transnational Company sold merchandise costing $500 to an Indian customer for 10,000 rupees (Rs). On December 5, 2006, Transnational received from the Indian customer a draft for Rs10,000, which it exchanged for U.S. dollars. Transnational closed its accounting records monthly and uses the perpetual inventory system. Selected spot exchange rates for the rupee were as follows:
Prepare journal entries related to the transaction with the Indian customer in the accounting records of Transnational Company.

Question

On November 5, 2006, Transnational Company sold merchandise costing $500 to an Indian customer for 10,000 rupees (Rs). On December 5, 2006, Transnational received from the Indian customer a draft for Rs10,000, which it exchanged for U.S. dollars. Transnational closed its accounting records monthly and uses the perpetual inventory system. Selected spot exchange rates for the rupee were as follows:
  Prepare journal entries related to the transaction with the Indian customer in the accounting records of Transnational Company.

Quizplus · Accepted Answer

The Answer of On November 5, 2006, Transnational Company sold merchandise costing $500 to an Indian customer for 10,000 rupees (Rs). On December 5, 2006, Transnational received from the Indian customer a draft for Rs10,000, which it exchanged for U.S. dollars. Transnational closed its accounting records monthly and uses the perpetual inventory system. Selected spot exchange rates for the rupee were as follows:
  Prepare journal entries related to the transaction with the Indian customer in the accounting records of Transnational Company.

On November 5, 2006, Transnational Company Sold Merchandise Costing $500