Pile, Incpurchased Merchandise for 500,000 FC from a Foreign Vendor on on November

Multiple Choice

Pile, Inc.purchased merchandise for 500,000 FC from a foreign vendor on November 30, 2020.Payment in foreign currency is due January 31, 2021.On the same day, Pile signed an agreement with a foreign exchange broker to buy 500,000 FC on January 31, 2021.Exchange rates to purchase 1 FC are as follows: ?

$$\begin{array} { l r r r } & \text { Nov. } 30,2020 & \text { Dec. } 31,2020 & \text { Jan. } 31,2021 \\\text { Spot } & \$ 1.49 & \$ 1.45 & \$ 1.44 \\30 \text { day } & \$ 1.48 & \$ 1.43 & \$ 1.43 \\60 \text { day } & \$ 1.46 & \$ 1.41 & \$ 1.42\end{array}$$ What will be the adjustment to the account payable included in the journal entry record on December 31, 2020?

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