Explore BrainMass

Explore BrainMass

    Computing and Settling Acts Receivable in Foreign Currency

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Prepare journal entries for the following:
    Items sold for 60,000 Singapore Dollars. The exchange rate on December 20 was $0.476 per Singapore Dollar. The purchase terms were n/30.

    On December 31 the exchange rate was $0.480 per Singapore Dollar.
    On January 17 payment was received for the December 20 sale. The exchange rate was $0.495 per Singapore Dollar.

    © BrainMass Inc. brainmass.com June 3, 2020, 10:53 pm ad1c9bdddf
    https://brainmass.com/business/foreign-exchange-rates/computing-settling-acts-receivable-foreign-currency-254771

    Solution Preview

    12/20 Accounts Receivable 28,560 (SGD 60,000*SGD 1/$.476)
    Sales 28,560
    To record a sale ...

    Solution Summary

    This solution illustrates the journal entries made when a sale is made in a foreign currency, the accounts receivable account is adjusted at year-end for the currency translation, and the account is settled in foreign currency.

    $2.19

    ADVERTISEMENT