On August 1, Steffen Computers, Inc

question 110

Multiple Choice

On August 1, Steffen Computers, Inc. purchased thirty computer chips, on account, from a company located in Taiwan for 530,000 Taiwan dollars. On that date the Taiwan dollar is worth $0.034. On September 1, when the Taiwan dollar was worth $0.036, payment was made. The journal entry on September 1 by Steffen Computers, Inc. would include a: (Round your final answer to the nearest dollar.)

• A)debit to Accounts Payable $19,080.
• B)debit to Foreign-Currency Transaction Loss -$1060.
• C)credit to Foreign-Currency Transaction Gain -$1060.
• D)credit to Cash $18,020.

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