On January 1,2008,Fandu Corp

question 54

Essay

On January 1,2008,Fandu Corp.started a foreign subsidiary.On April 1,2008,the subsidiary purchased inventory costing 150,000 stickles.One-fourth of this inventory remained unsold at the end of 2008 while 40% of the liability from the purchase had not yet been paid.The pertinent exchange rates were:
SHAPE \* MERGEFORMAT

Required:
What should have been the December 31,2008 inventory and accounts payable balances for this foreign subsidiary as translated into U.S.dollars? (Round your answers to the nearest whole dollar. )

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Definitions:

Accounts Receivable

Funds that a business has yet to receive from its customers for the products or services it has already provided.

Direct Method

An approach to allocate service department costs directly to producing departments without reciprocal services considered.

Sales Revenue

The total amount of money generated from the sale of goods or services by a company before any expenses are subtracted.

Accounts Receivable

Amounts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.