Iberico plc$,$ a Spanish firm whose functional currency is EUR, bought goods from a

British supplier at a cost of $10,000$ GBP paid in cash. The exchange rate on the date of

sale was $1GBP=1\mathrm{.}2$EUR. Which the journal entry shall Iberico plc prepare regarding

the purchase?

Select one:

a$.$ DR Inventories $12,000$ EUR, CR Cash $10,000$ GBP

b$.$ DR Inventories $12,000$ EUR, CR Cash $12,000$ EUR

c$.$ DR Inventories $12,000$ GBP$,$ CR Cash $12,000$ GBP

d$.$ DR Inventories $10,000$ GBP$,$ CR Cash $10,000$ GBP

Clear my choice