Matt Ltd., a Canadian company, sold inventory to a company in London, England for £1,000,000, which translated to $1,670,000 Cdn. Three months later, Matt received full payment on the account receivable, which at the time was valued at $1,770,000 Cdn. How should the resulting difference of $100,000 Cdn. between the date of sale and the date payment is received be treated?

Answer rating: 100% (QA)

The difference of 100000 Cdn should be treated as a foreign exchange gain for M... View the full answer