On December 5, 20X8, Texas based Imperial Corporation purchased goods from a Saudi Arabian firm for 100,000 riyals (SAR), to be paid on January 10, 20X9. The transaction is denominated in Saudi riyals. Imperial's fiscal year ends on December 31, and its reporting currency is the U.S. dollar. The exchange rates are:  December 5, 20X81 riyal =$0.265 December 31, 20X81 riyal = 0.262 January 10, 20X91 riyal = 0.264 Based on the preceding information, what journal entry would Imperial make on December 31, 20X8, to revalue foreign currency payable to equivalent U.S. dollar value? A.Accounts Payable (SAR)300  Foreign Currency Transaction Gain 300B.Accounts Payable (SAR)100  Foreign Currency Transaction Gain 100C.Foreign Currency Transaction Loss300  Accounts Payable

(SAR) 300D.Foreign Currency Transaction Loss200  Accounts Payable (SAR) 200

A. Option A
B. Option B
C. Option C
D. Option D


Answer: A

Business

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