On March 1,20X8,Wilson Corporation sold goods for a U.S.dollar equivalent of $31,000 to a Thai company.The transaction is denominated in Thai bahts.The payment is received on May 10.The exchange rates were:
What entry is required to revalue foreign currency payable to U.S.dollar equivalent value on May 10?

Question

Quizplus · Accepted Answer

Option B is the correct choice because it revalues the foreign currency payable on May 10 using the spot rate on that date, which is the most accurate way to determine the U.S. dollar equivalent value. Option A uses the spot rate on March 1, which is not relevant to the revaluation. Option C and D both use the average rate, which may not reflect the exact value of the foreign currency payable on May 10.

On March 1,20X8,Wilson Corporation Sold Goods for a U