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ABC Inc.sells thermal compressors throughout the world.On January 1,2013,the company sold 500 compressors to an American supplier at a total cost $60,000 U.S.when the spot rate was US$1=$1.1750CDN.Payment on the invoice was due by May 1,2013.ABC entered into a 4-month hedge with its bank at a forward rate of $1.20CDN on January 2,2013.ABC's year-end is on January 31,and on that date in 2013,the spot rate in effect was $1.1825CDN.
ABC received payment from its supplier on May 1,2013 when the spot rate was US$1=$1.1975 CDN.
-What is the required adjustment to ABC's accounts receivable at year-end as a result of this transaction?

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ABC Inc.sells thermal compressors throughout the world.On January 1,2013,the company sold 500 compressors to an American supplier at a total cost $60,000 U.S.when the spot rate was US$1=$1.1750CDN.Payment on the invoice was due by May 1,2013.ABC entered into a 4-month hedge with its bank at a forward rate of $1.20CDN on January 2,2013.ABC's year-end is on January 31,and on that date in 2013,the spot rate in effect was $1.1825CDN.
ABC received payment from its supplier on May 1,2013 when the spot rate was US$1=$1.1975 CDN.
-What is the required adjustment to ABC's accounts receivable at year-end as a result of this transaction?

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ABC Inc.sells thermal compressors throughout the world.On January 1,2013,the company sold 500 compressors to an American supplier at a total cost $60,000 U.S.when the spot rate was US$1=$1.1750CDN.Payment on the invoice was due by May 1,2013.ABC entered into a 4-month hedge with its bank at a forward rate of $1.20CDN on January 2,2013.ABC's year-end is on January 31,and on that date in 2013,the spot rate in effect was $1.1825CDN.
ABC received payment from its supplier on May 1,2013 when the spot rate was US$1=$1.1975 CDN.
-What is the required adjustment to ABC's accounts receivable at year-end as a result of this transaction?

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