Ask Question
4 November, 20:21

On March 1, 20X8, Wilson Corporation sold goods for a U. S. dollar equivalent of $31,000 to a Thai company. The transaction is denominated in Thai baht. The payment is received on May 10. The exchange rates were: March 1: 1 baht = $0.031 May 10: 1 baht = 0.034 What entry is required to revalue foreign currency payable to U. S. dollar equivalent value on May 10?

+4
Answers (1)
  1. 4 November, 22:35
    0
    Accounts Receivable (baht)

    3,000

    Foreign Currency Transaction Gain

    3,000

    Explanation:

    U. S. dollar equivalent value: = $31,000/.031 = 1,000,000

    $31,000 = Baht 1,000,000 x $.031 March 1 spot rate

    $34,000 = Baht 1,000,000 x $.034 May 10 spot rate

    $3,000 = Baht 1,000,000 x (.031 -.034) Gain

    1 dollar = 34.66 thai baht
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On March 1, 20X8, Wilson Corporation sold goods for a U. S. dollar equivalent of $31,000 to a Thai company. The transaction is denominated ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers