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:

Sliprings

Circular bands of metal placed on the rotating part of a machine. Carbon brushes riding in contact with the sliprings provide connection to the external circuit.

Commutators

A mechanical switch used in some electric motors and electrical generators to reverse the direction of current flow in the coils.

Hydrogen Atmosphere

An environment or a setting that predominantly contains hydrogen gas (H2).

Efficiency

The ratio of the useful output of a system to the input, expressed in percentage, indicating the system's ability to convert energy or resources into output effectively.