Brown Company sold supplies in the amount of 15,000 euros to a French company when the exchange rate was $1.15 per euro. At the time of payment, the exchange rate decreased to $1.12. Brown must record a loss of $450.

Question

Quizplus · Accepted Answer

To find out the loss, we need to calculate the difference between the exchange rates at the time of sale and payment:

15,000 euros x ($1.12 - $1.15) = -450 dollars

This means Brown Company recorded a loss of $450.

Brown Company Sold Supplies in the Amount of 15,000 Euros