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Coyote Corp The Appropriate Exchange Rates During 2013 Were as Follows

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Essay

Coyote Corp. (a U.S. company in Texas) had the following series of transactions in a foreign country during 2013:  Mar. 1  Bought inventory costing 60,000 pesos on credit.  May 1  Sold 60% of the inventory for 54,000 pesos on credit.  Aug. 1  Collected 48,000 pesos from customers  Sept. 1  Paid 36,000 pesos to creditors \begin{array} { | l | l | } \hline \text { Mar. 1 } & \text { Bought inventory costing } 60,000 \text { pesos on credit. } \\\hline \text { May 1 } & \text { Sold } 60 \% \text { of the inventory for } 54,000 \text { pesos on credit. } \\\hline \text { Aug. 1 } & \text { Collected } 48,000 \text { pesos from customers } \\\hline \text { Sept. 1 } & \text { Paid } 36,000 \text { pesos to creditors } \\\hline\end{array} The appropriate exchange rates during 2013 were as follows:  Exchange  Date  Rate  March 1,2013$.20=1 peso  May 1,2013$.22=1 peso  August 1,2013$.23=1 peso  September 1,2013$.24=1 peso  December 31,2013$.25=1 peso \begin{array}{|c|c|}\hline & \text { Exchange } \\\hline \text { Date } & \text { Rate } \\\hline \text { March } 1,2013 & \$ .20=1 \text { peso } \\\hline \text { May } 1,2013 & \mathbf{\$ . 2 2}=1 \text { peso } \\\hline \text { August } 1,2013 & \mathbf{\$ . 2 3}=1 \text { peso } \\\hline \text { September } 1,2013 & \mathbf{\$ . 2 4}=1 \text { peso } \\\hline \text { December } 31,2013 & \mathbf{\$ . 2 5}=1 \text { peso } \\\hline\end{array} What amount will Coyote Corp. report in its 2013 balance sheet for Accounts payable?

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