On 1 March 2022 Possum Ltd, an Australian entity, purchases US$1.5 million of inventory from Lincoln Inc.,

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On 1 March 2022 Possum Ltd, an Australian entity, purchases US$1.5 million of inventory from Lincoln Inc., a US entity. The amount is paid on 1 August 2022. Possum Ltd has a 30 June financial year end.

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Prepare the journal entries for Possum Ltd to account for the above transaction.

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Financial Accounting

ISBN: 9781743767382

9th Edition

Authors: Craig Deegan

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Question Posted: Sep 15, 2023 11:09 PM

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On 1 March 2022 Possum Ltd, an Australian entity, purchases US$1.5 million of inventory from Lincoln Inc.,

Question:

Additional information Spot rate Date 1 March 2022 A$1.00 = US$0.70 30 June 2022 A$1.00 = US$0.72 1 August 2022 A$1.00 = US$0.70

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1 March 2022 Dr Inventory Cr Accounts payable Reco...View the full answer

Financial Accounting

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