Banana, Inc. is a U.S.-based manufacturer and wholesaler. On 10/15/20x1, Banana made its first international sale. They sold $450,000 of products to a non-U.S. customer. Banana, Inc. agreed to allow the customer to pay for the purchase in its own currency, the FC. To avoid a penalty, the foreign buyer must make payment to Banana by February 2, 20x2. At the time of the sale, the FC/$ spot rate was FC1.97=$1 Banana, Inc. has a December 31 year-end. At 12/31/20x1, the foreign currency spot rate was FC1.95 = $1. Required: Give the journal entries for the receipt of payment on the sale on 2/2/20x2. At that date, the foreign currency spot rate was FC 2.00 = $1.
Banana, Inc. is a U.S.-based manufacturer and wholesaler. On 10/15/20x1, Banana made its first international sale. They sold $450,000 of products to a non-U.S. customer. Banana, Inc. agreed to allow the customer to pay for the purchase in its own currency, the FC. To avoid a penalty, the foreign buyer must make payment to Banana by February 2, 20x2. At the time of the sale, the FC/$ spot rate was FC1.97=$1 Banana, Inc. has a December 31 year-end. At 12/31/20x1, the foreign currency spot rate was FC1.95 = $1. Required: Give the journal entries for the receipt of payment on the sale on 2/2/20x2. At that date, the foreign currency spot rate was FC 2.00 = $1.
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 13DQ
Related questions
Question
Banana, Inc. is a U.S.-based manufacturer and wholesaler. On 10/15/20x1, Banana made its first international sale. They sold $450,000 of products to a non-U.S. customer. Banana, Inc. agreed to allow the customer to pay for the purchase in its own currency, the FC. To avoid a penalty, the foreign buyer must make payment to Banana by February 2, 20x2. At the time of the sale, the FC/$ spot rate was FC1.97=$1
Banana, Inc. has a December 31 year-end. At 12/31/20x1, the foreign currency spot rate was FC1.95 = $1.
Required:
- Give the
journal entries for the receipt of payment on the sale on 2/2/20x2. At that date, the foreign currency spot rate was FC 2.00 = $1.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
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.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT