Mozzie Ltd has a functional currency of A$. On 1 April 2023, Mozzie Ltd sells goods to a customer on credit terms for US$100 000. On 1 August 2023, cash is received from the customer to settle the invoice Exchange rates are: 1 April 2023 US$1.00 = A$1.30 30 June 2023 US$1.00 = A$1.50 1 August 2023 US$1.00 = A$1.40 What is the journal entry to record the sale transaction on 1 April 2023? a. DR Accounts Receivable $130 000 CR Sales $130 000 b. DR Accounts Receivable $130 000 DR Foreign Exchange Loss $20 000 CR Sales $150 000 c. DR Accounts Receivable $150 000 CR Foreign Exchange Gain $20 000 CR Sales $130 000 d. DR Inventory $130 000 CR Accounts Payable $130 000
Mozzie Ltd has a functional currency of A$. On 1 April 2023, Mozzie Ltd sells goods to a customer on credit terms for US$100 000. On 1 August 2023, cash is received from the customer to settle the invoice Exchange rates are: 1 April 2023 US$1.00 = A$1.30 30 June 2023 US$1.00 = A$1.50 1 August 2023 US$1.00 = A$1.40 What is the journal entry to record the sale transaction on 1 April 2023? a. DR Accounts Receivable $130 000 CR Sales $130 000 b. DR Accounts Receivable $130 000 DR Foreign Exchange Loss $20 000 CR Sales $150 000 c. DR Accounts Receivable $150 000 CR Foreign Exchange Gain $20 000 CR Sales $130 000 d. DR Inventory $130 000 CR Accounts Payable $130 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Mozzie Ltd has a functional currency of A$. On 1 April 2023, Mozzie Ltd sells goods to a customer on credit terms for US$100 000. On 1 August 2023, cash is received from the customer to settle the invoice Exchange rates are:
1 April 2023 US$1.00 = A$1.30
30 June 2023 US$1.00 = A$1.50
1 August 2023 US$1.00 = A$1.40
What is the
a.
DR
CR Sales $130 000
b.
DR Accounts Receivable $130 000
DR Foreign Exchange Loss $20 000
CR Sales $150 000
c.
DR Accounts Receivable $150 000
CR Foreign Exchange Gain $20 000
CR Sales $130 000
d.
DR Inventory $130 000
CR Accounts Payable $130 000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education