GreenView Company's receivable from a foreign customer is denominated in the customers. local currency, the Brazilian Real (BRL). This receivable totaled 900,000 BRL and was translated to $300,000 at December 31, 20X5. On January 31, 20X6, the receivable was collected from the customer at an exchange rate of 4 BRL to $1. What journal entry should GreenView record in January? 01, Dr. Foreign currency units 300,000 Cr. Accounts receivable Dr. Foreign currency units 225,000 02. Cr. Accounts receivable Dr. Foreign currency units 300,000 03. Cr. Exchange gain 4. Cr. Accounts receivable Dr. Foreign currency units Dr. Exchange loss Cr. Accounts receivable 225,000 75,000 300,000 225,000 75,000 225,000 300,000

GreenView Company's receivable from a foreign customer is denominated in the customers. local currency, the Brazilian Real (BRL). This receivable totaled 900,000 BRL and was translated to $300,000 at December 31, 20X5. On January 31, 20X6, the receivable was collected from the customer at an exchange rate of 4 BRL to $1. What journal entry should GreenView record in January? 01, Dr. Foreign currency units 300,000 Cr. Accounts receivable Dr. Foreign currency units 225,000 02. Cr. Accounts receivable Dr. Foreign currency units 300,000 03. Cr. Exchange gain 4. Cr. Accounts receivable Dr. Foreign currency units Dr. Exchange loss Cr. Accounts receivable 225,000 75,000 300,000 225,000 75,000 225,000 300,000

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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