The Following Information Pertains to Questions

question 31

Multiple Choice

The following information pertains to questions
RXN's year-end is on December 31.On November 1,2014 when the U.S.dollar was worth $1.165 CDN,RXN sold merchandise to an American client for $300,000.Full payment of this invoice was expected by January 31,2015.On December 1,the spot rate was $1.1450 CDN and the three-month forward rate was $1.1250 CDN.
In order to minimize its Foreign Exchange risk and exposure,RXN entered into a contract with its bank on December 1,2014 to deliver $300,000 U.S.in three months time.The spot rate at year-end was $1.16 CDN.On March 1,2015,RXN received the $300,000 U.S.from its client and settled its contract with the bank.
Significant dates pertaining to this transaction are as follows:
-What adjustment (if any) would be required to RXN's year-end accounts receivable balance?

• A)No adjustment is required.
• B)a $4,500 increase.
• C)a $3,000 decrease.
• D)a $4,500 decrease.

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Definitions:

Inflammation

A biological response to harmful stimuli, such as pathogens or damaged cells, characterized by redness, heat, swelling, and pain.

Connective Tissues

Tissues that support, bind together, and protect organs, including bone, cartilage, tendons, and fat.

Reticular Fibers

Fine, network-forming fibers found in connective tissue that provide support to the tissues and organs.

Connective Tissue Fiber

Protein fibers, including collagen, elastin, and reticular fibers, that provide support and strength to connective tissue.