On June 15, Blonski Computer Company Sold Twenty-Five Computers on Account

question 100

Multiple Choice

On June 15, Blonski Computer Company sold twenty-five computers on account to a company located in Argentina for 2,600,000 pesos. On that date, the peso is worth $0.084. On July 15, when the peso was worth $0.080, payment was received. Blonski Computer Company uses the perpetual inventory system. Ignoring Cost of Goods Sold, the journal entry on June 15 by Blonski Computer Company would be:

• A)debit Accounts Receivable $218,400 and credit Sales Revenue $218,400
• B)debit Accounts Receivable $208,000 and credit Sales Revenue $208,000
• C)debit Accounts Receivable $208,000, debit to Foreign-Currency Transaction Loss $10,400 and credit Sales Revenue $218,400
• D)debit Accounts Receivable $218,400, credit Sales $208,000, and credit Foreign Currency Transaction Gain $10,400

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Definitions:

Supply Curves

Graphs showing the relationship between the price of a good and the quantity of that good a seller is willing to supply.

Demand Curves

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.

Market Equilibrium

Market equilibrium is the condition in which the quantity supplied of a good matches the quantity demanded at a particular price, leading to a stable market condition.

Revenue Equation

An equation that calculates the total income generated from selling goods or services, often represented as Revenue = Price x Quantity.