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Sam Cooke Entity (SCE) Presses Vinyl LP's, EP's, and Singles

Question 1

Multiple Choice

Sam Cooke Entity (SCE) presses vinyl LP's, EP's, and singles for contracted recording studios and is a foreign subsidiary. SCE contracted with Beach Boys Studio (BBS) on February 14 to deliver 50,000 vinyl singles of the song "Twistin' the Night Away. On April 11, SCE shipped the singles under terms of FOB shipping point. Two days later on April 13, SCE invoiced BBS under terms of 5/10 n/30. Ten days later on April 23, SCE received payment from BBS and credited BBS's account for the 5 percent discount. SCE's year end is June 30. Which date should SCE use to apply an exchange rate to this transaction?


A) February 14
B) April 11
C) April 13
D) April 23
E) June 30

Correct Answer:

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