In this ex., on the year end date will the co., in it’s B/S record A/P = 5,950 or 6,050 & also the inventory at 5,950 or 6,050?
On the settlement date will the co., make a payment of 6,250? And pass a journal entry as,
Exch Loss 300
To Cash 6.250
And in the B/S the reduction of A/P would be of 5,950 or 6,250?
I know it’s not required for our exam but still I wanted to know how actually the transaction entries are noted. I would be overwhelmed if someone does helps me out with this. Thank you!