a. How much is the ForEx gain or (loss) on December 31, 2017? b. How much is the outstanding accounts receivable as of December31, 2017? c.  How much is the ForEx gain or (Loss) on March 2, 2018? d. How much is the Net ForEx gain or loss?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...
icon
Related questions
Question
a. How much is the ForEx gain or (loss) on December 31, 2017?
b. How much is the outstanding accounts receivable as of December31, 2017?
c.  How much is the ForEx gain or (Loss) on March 2, 2018?
d. How much is the Net ForEx gain or loss?
On November 1,2017, BMK Company a Philippine Based Company
received an order of 1,500 units of inventory from a HK Company a U.S. based
Company for $50,000. The inventory was shipped by BMK Company and billed
HK firm on December 1. 2017. BMK Company received the customer remittance
in full on March 2, 2018. BMK's fiscal year end is December 31. Assume that
BMK did not engage in any form of hedging activity.
The following are the spot rates for U.S. Dollars at various times are as follow:
Buying Spot Rates Selling Spot Rates
November 1. 2017
39.90
40.10
December 1. 2017
40.00
40.20
40.60
40.85
December 31, 2017
March 2. 2018
40.40
40.70
Transcribed Image Text:On November 1,2017, BMK Company a Philippine Based Company received an order of 1,500 units of inventory from a HK Company a U.S. based Company for $50,000. The inventory was shipped by BMK Company and billed HK firm on December 1. 2017. BMK Company received the customer remittance in full on March 2, 2018. BMK's fiscal year end is December 31. Assume that BMK did not engage in any form of hedging activity. The following are the spot rates for U.S. Dollars at various times are as follow: Buying Spot Rates Selling Spot Rates November 1. 2017 39.90 40.10 December 1. 2017 40.00 40.20 40.60 40.85 December 31, 2017 March 2. 2018 40.40 40.70
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning