Tuliptime, Inc. sold American fashions to a Japanese company at a price of 3.9 million...
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Tuliptime, Inc. sold American fashions to a Japanese company at a price of 3.9 million yen. On the sale date, the exchange rate was $0.01 per Japanese yen, but when Tuliptime received payment from its customer, the exchange rate was $0.0103 per yen. When the foreign receivable was collected, Tuliptime:
Credited Sales for $1,170.
Credited Gain on Fluctuation of Foreign Currency for $1,170.
Debited Loss on Fluctuation of Foreign Currency for $1,170.
Debited Cash for $39,000.
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