Will the us company record an exchange gain or loss


Response to the following questions:

1. Assume a U.S. company makes a credit sale to a foreign customer that is required to make payment in its foreign currency. In the current period, the exchange rate is $1.40 on the date of the sale and is $1.30 on the date the customer pays the receivable. Will the U.S. company record an exchange gain or loss?

2. If a U.S. company makes a credit sale to a foreign customer required to make payment in U.S. dollars, can the U.S. company have an exchange gain or loss on this sale?

 

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Accounting Basics: Will the us company record an exchange gain or loss
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