On June 15, Central Computers, Inc. sold twenty-five computers on account to a company located in Argentina for 3,000,000 pesos. On that date, the peso is worth $0.079. On July 15, when the peso was worth $0.070, payment was received. The journal entry to record the sale on June 15 would include a:
A) debit to Accounts Receivable $237,000
B) debit to Accounts Receivable $210,000.
C) debit to Foreign-Currency Transaction Loss $27,000.
D) credit to Sales $210,000.

Question

Quizplus · Accepted Answer

The journal entry on June 15 would record the sale at the exchange rate on that date. 3,000,000 pesos at $0.079 per peso equals $237,000, which is debited to Accounts Receivable.