On February 1, Jacher Company, a U.S. company, purchased inventory on credit from a British Company for £50,000. Jacher properly recorded its inventory and accounts payable at $90,000, based on an exchange rate of $1.80. Jacher paid for the inventory on February 25 when the exchange rate was $1.75. Prepare the journal entry of Jacher Company to record the payment.
Answer to relevant QuestionsOn June 3, Kratz Company, a U.S. company, purchased inventory on credit from a British Company for £40,000. Kratz properly recorded its inventory and accounts payable at $72,800, based on an exchange rate of $1.82.Kratz ...On June 21, 2010, the Livingston Company, a U.S. company, sold merchandise on credit to a Swiss company for 25,000 francs. The company received payment for the merchandise on July 10, 2010. The exchange rates on June 21 and ...Each unit of Black Corporation’s inventory has a ceiling of $8,455, a normal profit margin of $1,500, and a current replacement cost of $6,800. Determine the amount per unit that should be used as the market value to apply ...Use the information in RE9-8. Calculate Uncle Butch’s Hunting Supply Shop’s ending inventory using the retail inventory method under the LIFO cost flow assumption.In RE9-8, Uncle Butch’s Hunting Supply Shop reports the ...On January 20, 2011, the records of the Stewart Company revealed the following information:Inventory, July 1, 2010 ............. $ 53,600Purchases, July 1, 2010–January 20, 2011 ....... 368,000Sales, July 1, ...
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