Business, 27.12.2020 15:50 rosezgomez97

On November 1, 20X1, A U. S. company sold merchandise to a foreign company for 375,000 kroner. The payment in krone is due on January 31, 20X2. The spot rate was as follows: $0.20 per krone on November 1, 20X1; $0.21 per krone on December 31, 20X1; and $0.19 per krone on January 31, 20X2 when the payment was received. Which of the following incorrectly describes the accounting for this foreign currency transaction? a. The receivable was recorded at $150,000 on December 1, 2018.
b. The receivable was recorded at $142,500 on the December 31, 2018 balance sheet.
c. The foreign currency transaction gain included on the income statement for the year ending December 31, 2018 was $7,500.
d. The foreign currency transaction gain included on the income statement for the year ending December 31, 2019 was $15,000.

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On November 1, 20X1, A U. S. company sold merchandise to a foreign company for 375,000 kroner. The p...

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