A U.S company sells a new piece of equipment on credit to a British customer for 10,000
Question:
A U.S company sells a new piece of equipment on credit to a British customer for 10,000 GBP in January ,
When the U.S. company sold the equipment , the exchange rate was 0.5 GBP per USD , but when the payment was received in March, the exchange rate was 0.75 GBP per USD.
How should the U.S. company record the payment in March from their British customer?
Debit Credit
Foreign Currency Transaction Loss $6,667
Cash $13,333
Account Receivable $20,000
Debit Credit
Accounts Receivable ( GBP) $20,000
Foreign Currency Transaction Gain $3,333
Cash $16,667
Debit Credit
Foreign Currency Transaction Loss $5,000
Cash $15,000
Account Receivable ( GBP) $20,000
Debit Credit
Accounts Receivable ( GBP) $20,000
Foreign Currency Transaction $5,000
Cash $15,000
Expert Answer:
