A U.S.company's credit sale to an international customer to be paid in a foreign currency is recorded using the exchange rate on the date of sale.

Question

Quizplus · Accepted Answer

When a U.S. company makes a credit sale to an international customer to be paid in a foreign currency, the transaction is recorded using the exchange rate on the date of the sale. This is because the value of the currency can fluctuate, and recording the sale at the current exchange rate ensures accurate financial reporting.

A USCompany's Credit Sale to an International Customer to Be Paid