On August 1,Steffen Computers,Inc

Multiple Choice

On August 1,Steffen Computers,Inc.purchased thirty computer chips,on account,from a company located in Taiwan for 500,000 Taiwan dollars.On that date the Taiwan dollar is worth $0.040.On September 1,when the Taiwan dollar was worth $0.038,payment was made.The journal entry on September 1 by Steffen Computers,Inc.would include a:

A) debit to Accounts Payable $19,000.
B) debit to Foreign-Currency Transaction Loss $1,000.
C) credit to Foreign-Currency Transaction Gain $1,000.
D) credit to Cash $20,000.