On June 15, Blonski Computer Company Sold Twenty-Five Computers on Account

Multiple Choice

On June 15, Blonski Computer Company sold twenty-five computers on account to a company located in Argentina for 2,600,000 pesos. On that date, the peso is worth $0.084. On July 15, when the peso was worth $0.080, payment was received. Blonski Computer Company uses the perpetual inventory system. Ignoring Cost of Goods Sold, the journal entry on June 15 by Blonski Computer Company would be:

A) debit Accounts Receivable $218,400 and credit Sales Revenue $218,400
B) debit Accounts Receivable $208,000 and credit Sales Revenue $208,000
C) debit Accounts Receivable $208,000, debit to Foreign-Currency Transaction Loss $10,400 and credit Sales Revenue $218,400
D) debit Accounts Receivable $218,400, credit Sales $208,000, and credit Foreign Currency Transaction Gain $10,400