On 1/1/ 2016, BWB .Co (Jordanian company) purchased a goods of $2,000,000 on account from MC. Co that is U.S.A company on account. The outstanding amount is due to be paid On 1/5/ 2017. The exchange rate of Dollar with respect to Jordanian Dinar were as follow:

Date	1/10/2016	31/12/2016 (FS)	1/5/2017
Rate	.700	.710	.700

On 31/12/, BWB.Co made the following adjustment entry:

Select one:

a. DR. account payable of 20000 CR. gain F/C of 20000

b. DR. loss F/C of 20000 CR. account receivable of 20000

c. DR. loss F/C of 20000 CR. account payable of 20000

d. DR. account receivable of 20000 CR. gain F/C of 20000

Answer rating: 100% (QA)

AS PER US GAAP AND IFRS ALSO SOLUTION WILL BE SAME AS PER IAS21 A FOREIGN EXCHANGE TRANSACTION WILL ... View the full answer