Essay
Assia Entity (AE), an Moroccan exporter, with the Moroccan Dirhams (MAD) as both its functional and presentation currency, sells inventory with a carrying amount of MAD 250,000 to a Bruneian importer, Darma Entity (DE) on credit denominated in Bruneian dollar BND 40,000 on December 1, 20X1 to be settled on February 1, 20X2. The spot exchange rate on the transaction date is BND1 = MAD7.
-What is the journal entry on the settlement day, February 1, assuming the spot exchange rate is BND1 = MAD6.5?
Correct Answer:
Verified
Correct Answer:
Verified
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