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2. Suppose that on April 2, 2020, the spot rate for dirhams is 5.5 dirhams/GBP. Victoria,...

2. Suppose that on April 2, 2020, the spot rate for dirhams is 5.5 dirhams/GBP. Victoria, PLC. will still receive 500,000 dirhams. How much are they now worth in GBP? Prepare the entries in Victoria's books.

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Answer #1
5.5 dirhams per GBP
5.5 Dirhams 1 GBP
500000 Dirhams =500000/5.5
90909.09091
Accounts receivable Original sales price
To Sales Original sales price
If spot rate less than original sales price
Cash Amount received
Foreign exchange loss Difference
To accounts receivale Original sales price
If spot rate more than original sales price
Cash Amount received
To accounts receuvale Original sales price
To foreign exchange gain Difference
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