Relevant Exchanges Rates Assignment
February 18th, 2020
Company D, a domestic entity, sold goods to a British company on 5/10 with the transaction denominated in Pounds. The sales price of the goods was £300,000, and the cost of the goods was $100,000. The receivable is payable in full on 6/10, and Company D prepares its financials monthly.
Relevant exchanges rates are 5/10 £1 – $1.10, 5/31 £1 – $1.15, and 6/10 £1 = $1.20. Based on this information, how much would accounts receivable need to be revalued by on 5/31? a) $15,000 decrease b) $15,000 increase O c) $0 d) $10,000 decrease. .