On November $15,2024,$ Malcolm Ltd $($ML$)$ ordered a large volume of wine from a California winery for USD$$950,000.$ The wine was delivered on December $10,2024.$ The accounts payable was due on January $31,2025.$ The relevant exchange rates are:

November $15,2024$

$$1=$

USD $$0\mathrm{.}74$

December $10,2025$

$$1=$

USD $$0\mathrm{.}76$

December $31,2025$

$$1=$

USD $$0\mathrm{.}78$

February $1,2026$

$$1=$

USD $$0\mathrm{.}75$

ML has made all year end adjusting entries necessary for this foreign currency purchase. What entry would be made on Feb $1,2026,$ when payment is made to the supplier?

Question $18$ options:

Dr$.$ Accounts payable $$1,282,051$

Dr$.$ Foreign exchange gain $ $15,384$

Cr$.$ Cash $$1,266,667$

Dr$.$ Cash

$1,217,949$

Dr$.$ Foreign exchange loss

$48,718$

Cr$.$ Accounts Payable

$1,266,667$

Dr$.$ Accounts payable

$1,217,949$

Dr$.$ Foreign exchange loss

$48,718$

Cr$.$ Cash

$1,266,667$

Dr$.$ Accounts payable

$1,250,000$

Dr$.$ Foreign exchange loss

$16,667$

Cr$.$ Cash

$$

$1,266,667$