On June 15, Central Computers, Inc

question 83

Multiple Choice

On June 15, Central Computers, Inc. 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 to record the sale on June 15 would include a:

• A) debit to Accounts Receivable $237,000
• B) debit 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:

Decimal

A number system based on ten, involving numbers with fractions represented by digits following a period.

Smaller

Referring to an object of lesser size or amount compared to another.

Multiply

A mathematical operation where a number is added to itself a certain number of times, equivalent to repeated addition.

Greater

A term used to indicate a larger amount, size, degree, or importance in comparison with something else.