On June 15,Copps Stores Sold Twenty-Five Computers,on Account,to a Company

question 116

Multiple Choice

On June 15,Copps Stores 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.The journal entry on July 15 by Copps Stores would include a:

• A)credit to Cash $237,000.
• B)credit to Accounts Receivable $210,000.
• C)debit to Foreign-Currency Transaction Loss $27,000.
• D)credit to Sales $210,000.

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Definitions:

State Statutes

Laws established by state legislatures that govern state-specific legal issues and matters.

Market Value

The ongoing rate at which an asset or service is offered for buying or selling in a market.

Note Payable

A written promise to pay a specified sum of money, plus interest, to a creditor at a future date.

Cash

A form of currency that includes coins and paper notes, used by companies to conduct transactions or stored as part of their liquid assets.