On September 12, 2023, Levis, a U.S. companypurchased goods from a German Company at a price of 50,000 Euros, when the direct exchange rate was 1 Euro = \$1.35 The account has not been settled as of December 31, 2023, when the exchange rate was 1 Euro = \$ 1.32. On February 22024 Levis paid off the amount due to German Co. when the exchange rate was Euro o = \$1 1.33 The entry required to revalue the foreign currency liability to U.S. on December 31, 2023 is a. Debit Foreign Currency Transaction Loss for $ 500 and credit Accounts Payable (for $ 500. b. Debit Accounts Payable () for $1,500 and credit Foreign Currency Transaction gain for $1,500. c. Debit Foreign Currency Transaction Loss for $1,500 and credit Accounts Payable () for $1,500. d. Debit Accounts Payable (for $500 and credit Foreign Currency Transaction gain for $500.

On September 12, 2023, Levis, a U.S. companypurchased goods from a German Company at a price of 50,000 Euros, when the direct exchange rate was 1 Euro = \$1.35 The account has not been settled as of December 31, 2023, when the exchange rate was 1 Euro = \$ 1.32. On February 22024 Levis paid off the amount due to German Co. when the exchange rate was Euro o = \$1 1.33 The entry required to revalue the foreign currency liability to U.S. on December 31, 2023 is a. Debit Foreign Currency Transaction Loss for $ 500 and credit Accounts Payable (for $ 500. b. Debit Accounts Payable () for $1,500 and credit Foreign Currency Transaction gain for $1,500. c. Debit Foreign Currency Transaction Loss for $1,500 and credit Accounts Payable () for $1,500. d. Debit Accounts Payable (for $500 and credit Foreign Currency Transaction gain for $500.

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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