AJP is a retailer operating in A-land and its functional currency is the A$. On 25 October

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AJP is a retailer operating in A-land and its functional currency is the A$. On 25 October 20X5 AJP buys goods for resale on credit from ZXY, a manufacturing company based in Z-land where the currency is Z$. The goods cost Z$60,000 and remain in inventory at AJP's year end of 31 October 20X5. AJP has not yet paid ZXY. The exchange rates are as follows: At 25 October 20X5: A$1: Z$1.20 At 31 October 20X5: A$1: Z$1.25 What is the carrying amount of this inventory, and the corresponding trade payable, at 31 October 20X5? Solution A.Inventory: A$50,000 | Trade payable: A$48,000 B.Inventory: A$50,000 | Trade payable: A$50,000 C.Inventory: A$48,000 | Trade payable: A$50,000 D.Inventory: A$48,000 | Trade payable: A$48,000

Posted Date: May 18, 2024 04:13 PM

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AJP is a retailer operating in A-land and its functional currency is the A$. On 25 October

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