Frankie Ltd is a New Zealand company that makes and sells silk cushion covers. On 1 March
Question:
Frankie Ltd is a New Zealand company that makes and sells silk cushion covers. On 1 March 2022, Frankie Ltd ordered fabric from a Hong Kong company at an invoice cost of HK$500,000 in terms of FOB destination. On 30 April 2022, the goods were delivered to stores. The agreed payment arrangements are that 10% of the total amount owing would be paid on delivery, 50% three months after delivery, and the remaining 40% four months after delivery. The end of the reporting period for Frankie Ltd is 30 June 2022. The following exchange rates are applicable;
1 March 2022 HK$8.15 = NZ$1.00
30 April 2022 HK$8.30 = NZ$1.00
30 June 2022 HK$8.56 = NZ$1.00
31 July 2022 HK$8.70 = NZ$1.00
31 August 2022 HK$8.90 = NZ$1.00
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng