Breanna Boutique purchased on credit 50,000 worth of clothing from a British company when the exchange rate was $1.97 per British pound.
Breanna Boutique purchased on credit £50,000 worth of clothing from a British company when the exchange rate was $1.97 per British pound. At the year-end balance sheet date the exchange rate increased to $2.76. Breanna Boutique must record a: