Norton Co., a U.S. corporation, sold inventory on December 1, 2011, with payment of 10,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows:

For what amount should Sales be credited on December 1?

Question

Norton Co., a U.S. corporation, sold inventory on December 1, 2011, with payment of 10,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows:

For what amount should Sales be credited on December 1?

Quizplus · Accepted Answer

Sales should be recorded in U.S. dollars on the date of the transaction, which was December 1, 2011. At that time, the exchange rate was $1.7241 per British pound. Therefore, the Sales should be credited for $17,241 (10,000 British pounds multiplied by $1.7241 per British pound).

Norton Co, a U