Accounting Issues Related to International Business— Sale to Foreign Customer
• Suppose that on February 1, 2014, Joe Inc., a U.S. company, makes a sale and ships goods to Jose SA, a Mexican customer, for $100,000 (U.S.)
• However, it is agreed that Jose will pay in pesos on March 2, 2014. The exchange rate as of February 1, 2014 is U.S.$1 = 10 pesos. How many pesos does Jose agree to pay?
Accounting Issues Related to International Business— Sale to Foreign Customer• Suppose that on February 1, 2014, Joe Inc., a U.S. company, makes a sale and ships goods to Jose SA, a Mexican customer, for $100,000 (U.S.)• However, it is agreed that Jose will pay in pesos on March 2, 2014. The exchange rate as of February 1, 2014 is U.S.$1 = 10 pesos. How many pesos does Jose agree to pay?
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