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

question 39

Multiple Choice

On June 15,Blonski Computer Company sold twenty-five computers on account to a company located in Argentina for 3,000,000 pesos.On that date,the peso is worth $0.079.On July 15,when the peso was worth $0.070,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 $237,000 and credit Sales Revenue $237,000.
• B)debit Accounts Receivable $210,000 and credit Sales Revenue $210,000.
• C)debit Accounts Receivable $210,000,debit to Foreign-Currency Transaction Loss $27,000 and credit Sales Revenue $237,000.
• D)debit Accounts Receivable $237,000,credit Sales $210,000,and credit Foreign Currency Transaction Gain $27,000.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.

Social Security Administration

The Social Security Administration is a U.S. government agency responsible for administering social insurance programs, including retirement, disability, and survivors' benefits.

Rate Of Return

A measure of the profitability of an investment, calculated as a percentage of the original investment.

Net Value

The difference between the total benefits and total costs associated with an economic activity or transaction.