An Australian Company Sells Goods Worth $AU 2000 to a US

Multiple Choice

An Australian company sells goods worth $AU 2000 to a US company and the goods are invoiced in US dollars.At the date of sale,the exchange rate is $AU 1.00 = $US 0.78.At the date the goods are paid for,the exchange rate is $AU 1.00 = $US 0.85.The Australian company should make the following entries to record the sale of the goods and the payment received (rounded) :

A) $\begin{array} { c c r } \text { A) Dr Accounts Receivable } & \$ 1560 & \\\text { Cr Sales } & & \$ 1560 \\\text { Dr Cash at Bank } & \$ 1725 & \\\text { Cr Exchange Gain } & & \$ 165 \\\text { Cr Accounts Receivable } & & \$ 1560\end{array}$
B) $\begin{array}{l}\text { B) Dr Accounts Receivable } \quad \$ 2000\\\begin{array} { l r r } \quad \text { Cr Sales } & & \$ 2000 \\\text { Dr Cash at Bank } & \$ 1560 & \\\text { Dr Exchange Loss } & \$ 440 & \\\quad \text { Cr Accounts Receivable } & & \$ 2000\end{array}\end{array}$
C) $\begin{array} { l l l } \text { C) Dr Accounts Receivable } & \$ 2000 & \\\quad \text { Cr Sales } & & \$ 2000 \\\text { Dr Cash at Bank } & \$ 2000 \\\text { Dr account receivable } & \$ 2000 &\end{array}$
D) $\begin{array}{l}\text { D) Dr Accounts Receivable } \quad \$ 2000\\\begin{array} { l r r } \text { Cr Sales } & & \$ 2000 \\\text { Dr Cash at Bank } & \$ 1835 & \\\text { Dr Exchange Loss } & \$ 165 & \\\quad \text { Cr Accounts Receivable } & & \$ 2000\end{array}\end{array}$