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Mozzie Ltd has a functional currency of A$. On 1 April 2023, Mozzie Ltd sells goods to a customer on credit terms for US$100 000. On 1 August 2023, cash is received from the customer to settle the invoice Exchange rates are: 1 April 2023 US$1.00 = A$1.30 30 June 2023 US$1.00 = A$1.50 1 August 2023 US$1.00 = A$1.40 What is the journal entry to record the sale transaction on 1 April 2023?   a. DR Accounts Receivable $130 000 CR Sales $130 000   b. DR Accounts Receivable $130 000 DR Foreign Exchange Loss $20 000 CR Sales $150 000   c. DR Accounts Receivable $150 000 CR Foreign Exchange Gain $20 000 CR Sales $130 000   d. DR Inventory $130 000 CR Accounts Payable $130 000

Mozzie Ltd has a functional currency of A$. On 1 April 2023, Mozzie Ltd sells goods to a customer on credit terms for US$100 000. On 1 August 2023, cash is received from the customer to settle the invoice Exchange rates are: 1 April 2023 US$1.00 = A$1.30 30 June 2023 US$1.00 = A$1.50 1 August 2023 US$1.00 = A$1.40 What is the journal entry to record the sale transaction on 1 April 2023?   a. DR Accounts Receivable $130 000 CR Sales $130 000   b. DR Accounts Receivable $130 000 DR Foreign Exchange Loss $20 000 CR Sales $150 000   c. DR Accounts Receivable $150 000 CR Foreign Exchange Gain $20 000 CR Sales $130 000   d. DR Inventory $130 000 CR Accounts Payable $130 000

FINANCIAL ACCOUNTING
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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Mozzie Ltd has a functional currency of A$. On 1 April 2023, Mozzie Ltd sells goods to a customer on credit terms for US$100 000. On 1 August 2023, cash is received from the customer to settle the invoice Exchange rates are:
1 April 2023 US$1.00 = A$1.30
30 June 2023 US$1.00 = A$1.50
1 August 2023 US$1.00 = A$1.40
What is the journal entry to record the sale transaction on 1 April 2023?

 

a.

DR Accounts Receivable $130 000
CR Sales $130 000

 

b.

DR Accounts Receivable $130 000
DR Foreign Exchange Loss $20 000
CR Sales $150 000

 

c.

DR Accounts Receivable $150 000
CR Foreign Exchange Gain $20 000
CR Sales $130 000

 

d.

DR Inventory $130 000
CR Accounts Payable $130 000

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