On August 1, Central Computers, Inc

Multiple Choice

On August 1, Central 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 to record the sale on August 1 would include a:

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