Pile, Inc Purchased Merchandise for 500,000 FC from a Foreign Vendor

Multiple Choice

Pile, Inc. purchased merchandise for 500,000 FC from a foreign vendor on November 30, 20X5. Payment in foreign currency is due January 31, 20X6. On the same day, Pile signed an agreement with a foreign exchange broker to buy 500,000 FC on January 31, 20X6. Exchange rates to purchase 1 FC are as follows: What will be the adjustment to the account payable included in the journal entry record on December 31, 20X5?

A) $20,000 debit
B) $20,000 credit
C) $30,000 debit
D) $0