Question: Suppose Tex Cola Corp sells soft drink syrup on account to a

Suppose Tex-Cola Corp. sells soft-drink syrup on account to a Russian company on September 12. Tex-Cola Corp. agrees to accept 400,000 Russian rubles. On the date of sale, the ruble is quoted at $ 0.34. Tex- Cola Corp. collects half the receivable on October 18 when the ruble is worth $ 0.31. Then on November 15, when the foreign- exchange rate of the ruble is $ 0.36, Tex- Cola Corp. collects the final amount.
Journalize these three transactions for Tex-Cola Corp. Ignore cost of goods sold.

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  • CreatedJuly 25, 2014
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