Ulysses Company Purchases Goods from China Amounting to 372,372 Yuan

Multiple Choice

Ulysses Company purchases goods from China amounting to 372,372 Yuan (the transaction is denominated in the Chinese Yuan) .Assume the Yuan is trading at $0.154 at the date the goods are ordered,and the Yuan is trading at $0.155 at the date the goods are received.When the invoice is paid a month later,the Yuan is trading at $.156.Assume all three dates are in the same fiscal year.Which of the following is true?

A) The entry to record the payment will include a gain of $744.74.
B) The entry to record the payment will include a gain of $372.37.
C) The entry to record the purchase will include a credit to Accounts Payable of $57,345.29.
D) The entry to record the purchase will include a credit to Accounts Payable of $57,717.66.