Acme Corporation (a U.S. company located in Sarasota, Florida) has the following import/export transactions in 2004:
March 1 Bought inventory costing 50,000 pesos on credit.
May 1 Sold 60 percent of the inventory for 45,000 pesos on credit
August 1 Collected 40,000 pesos from customers.
September 1 Paid 30,000 pesos to creditors.
Currency exchange rates for 1 peso for 2004 are as follows:
March 1
.$0.17
May 1
…0.18
August 1
…0.19
September 1
.0.20
December 31
0.21
For each of the following accounts, what will Acme report on its 2004 financial statements?
a. Inventory
b. Cost of Goods Sold: March 1
c. Sales: May 1
d. Accounts Receivable
e. Accounts Payable
f. Cash
