Robert Company sold inventory to an Australian company for 50,000 Australian dollars on April 1, 20X0 with settlement to be in 60 days. On the same date, Robert entered into a 60-day forward contract to sell 50,000 Australian dollars at a forward rate of $1.164 in order to manage its exposed foreign currency receivable. The forward contract is not designated as a hedge. The spot rates were as follows: April 11 Australian dollar=$1.167 May 311 Australian dollar= 1.16 Based on the preceding information, the entry to revalue the foreign currency payable to current U.S. dollar value on May 31 will include a
A. credit to Foreign Currency Transaction Gain for $200.
B. debit to Foreign Currency Transaction Loss for $550.
C. debit to Foreign Currency Transaction Loss for $350.
D. credit to Foreign Currency Transaction Gain for $350.
Answer: A
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Strategic issues particular to the enterprise(s) and context described
What will be an ideal response?