
Translation:it is the most common method used and is applied when the local currency is the foreign entity’s functional currency. The subsidiary statement must be translated from its local currency to the parents’ functional currency. To translate the financial statements, the company will use the current rate, which is the exchange rate on
preparation of schedule transacting the December 31, 20X1

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Chapter 12 Solutions
Advanced Financial Accounting
- Question: A company sells goods on credit. On one sale, they sold it for $20,000 and offered a 2/10, net/30 payment option. Two days after the sale, the customer complained and they allowed them a $1,000 sales allowance. The customer paid the net amount within 8 days after the sale. The cash proceeds received by the seller are? A. $20,000 B. $19,000 C. $18,600 D. $18,620arrow_forwardSolve thisarrow_forwardNonearrow_forward
- MC Company made sales to two customers. Both sales were on credit terms of 2/10, n/30. Customer A purchased $30,000 of goods, returned none, and paid in 9 days. Customer B purchased $40,000 of goods, returned, and was given credit for $4,000 of goods and paid in 25 days. What was the net revenue from these two customers?a. $70,000 b. $66,000 c. $65,400arrow_forwardWhat is bright star company general accounting net income or net loss ?arrow_forwardPlease need help with this financial accounting questionarrow_forward
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage