CASE 1. The Philippine corporation purchased merchandise from a US firm for USD$15,000 on November 1, 2021. Also on the same date the Philippine corporation sold merchandise to a US firm for USD$30,000.The following rates were available: Buying RateSelling RateNovember 1, 2021US$1 = P46.00P1 = $.021505 December 31, 2021US$1 = P45.80P1 = $.021277January 31, 2022US$1 = P46.20P1 = $.022222What is the amount of sales revenue recognized for the year end 2021?1,380,0001,395,0001,374,0001,410,000 2. What is the carrying amount of the accounts receivable on December 31, 2021?1,410,0001,374,0001,386,000 1,350,0003. What is the carrying amount of the accounts payable on December 31, 2021?687,000705,000693,000675,0004. What is the total/net foreign currency gain/(loss) for the year 2021?12,000 gain12,000 loss13,500 gain13,500 loss

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Answered: CASE 1. The Philippine corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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CASE 1. The Philippine corporation purchased merchandise from a US firm for USD$15,000 on November 1, 2021. Also on the same date the Philippine corporation sold merchandise to a US firm for USD$30,000.

The following rates were available:

	Buying Rate	Selling Rate
November 1, 2021	US$1 = P46.00	P1 = $.021505
December 31, 2021	US$1 = P45.80	P1 = $.021277
January 31, 2022	US$1 = P46.20	P1 = $.022222

What is the amount of sales revenue recognized for the year end 2021?1,380,000
1,395,000
1,374,000
1,410,000

2. What is the carrying amount of the accounts receivable on December 31, 2021?

1,410,000

1,374,000

1,386,000

1,350,000

3. What is the carrying amount of the accounts payable on December 31, 2021?

687,000

705,000

693,000

675,000

4. What is the total/net foreign currency gain/(loss) for the year 2021?

12,000 gain

12,000 loss

13,500 gain

13,500 loss

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