Murun Ltd is an Australian company that makes and sells small electronic goods. On 1 February 2023,
Question:
Murun Ltd is an Australian company that makes and sells small electronic goods. On 1 February 2023, a customer from the United States ordered some goods from Murun Ltd at an invoice cost of US$500 000 on terms FOB destination. On 30 April 2023, the goods were delivered to the customer. The agreed payment arrangements are that 50% of the total amount owing would be paid on delivery, 30% 3 months after delivery, and the remaining 20% 4 months after delivery. The end of the reporting period for Murun Ltd is 30 June. The following exchange rates are applicable.
Required
Prepare the journal entries of Murun Ltd necessary to record the above transactions in its accounting records.
Step by Step Answer:
The date of the transaction for inventories sold FOB destination is the ...View the full answer
Financial Reporting
ISBN: 9780730396413
4th Edition
Authors: Janice Loftus, Ken Leo, Sorin Daniliuc, Belinda Luke, Hong Nee Ang, Mike Bradbury, Dean Hanlon, Noel Boys, Karyn Byrnes
