When a U.S. company enters into a credit sales transaction denominated in a foreign currency, the transaction must be recorded in U.S. dollars. The exchange is measured at the exchange rate on the

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The transaction should be recorded in the U.S. dollars on the date of sale, and the exchange rate on that date should be used for the conversion to U.S. dollars. This is consistent with the principle of historical cost and ensures accurate financial reporting. The date of collection or date of record may not accurately reflect the exchange rate on the date of sale, and the date of conversion is typically used for transactions that have already been collected or settled.

When a US Company Enters into a Credit Sales Transaction Denominated in Denominated