On June 19, Don Co., a U.S. company, sold and delivered merchandise on a 30-day account to Cologne 3 GmbH, a German corporation, for 200,000 euros. On July 19, Cologne paid Don in full. Relevant curre...

Question 1

Question

On June 19, Don Co., a U.S. company, sold and delivered merchandise on a 30-day account to Cologne 3 GmbH, a German corporation, for 200,000 euros. On July 19, Cologne paid Don in full. Relevant curre...

On June 19, Don Co., a U.S. company, sold and delivered merchandise on a 30-day account to Cologne 3 GmbH, a German corporation, for 200,000 euros. On July 19, Cologne paid Don in full. Relevant currency rates were: June 19 July 19 Spot rate $0.988 $0.995 30-day forward rate 0.990 1.000 What amount should Don record on June 19 as an account receivable for its sale to Cologne?

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Answer

Answer #1

Calculation of Accounts receivable:

Explanation-

Account receivable (Dollar Amount) = 200,000*.988

Account receivable (Dollar Amount) = $197,600

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On June 19, Don Co., a U.S. company, sold and delivered merchandise on a 30-day account to Cologne 3 GmbH, a German corporation, for 200,000 euros. On July 19, Cologne paid Don in full. Relevant curre...

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On June 19, Don Co., a U.S. company, sold and delivered merchandise on a 30-day account to Cologne 3 GmbH, a German corporation, for 200,000 euros. On July 19, Cologne paid Don in full. Relevant curre...

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Vino Veritas Company, a U.S.-based importer of wines and spirits, placed an order with a French...

On June 19, Don Co., a U.S. company, sold and delivered merchandise on a 30-day account to Cologne 3 GmbH, a German corporation, for 200,000 euros. On July 19, Cologne paid Don in full. Relevant curre...

Homework Answers

Add Answer to: On June 19, Don Co., a U.S. company, sold and delivered merchandise on a 30-day account to Cologne 3 GmbH, a German corporation, for 200,000 euros. On July 19, Cologne paid Don in full. Relevant curre...

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Earn Coins

Vino Veritas Company, a U.S.-based importer of wines and spirits, placed an order with a French...

Add Answer to:
On June 19, Don Co., a U.S. company, sold and delivered merchandise on a 30-day account to Cologne 3 GmbH, a German corporation, for 200,000 euros. On July 19, Cologne paid Don in full. Relevant curre...