Brisco Bricks purchases raw material from its foreign supplier, Bolivian Clay, on May 8. Payment of 2,000,000 foreign currency units (FC) is due in 30 days. May 31 is Brisco's fiscal year-end. The pertinent exchange rates were as follows:

For what amount should Brisco's Accounts Payable be credited on May 8?

A) $2,500,000.
B) $2,440,000.
C) $1,600,000.
D) $1,639,344.
E) $1,666,667.

Question

Brisco Bricks purchases raw material from its foreign supplier, Bolivian Clay, on May 8. Payment of 2,000,000 foreign currency units (FC) is due in 30 days. May 31 is Brisco's fiscal year-end. The pertinent exchange rates were as follows:

For what amount should Brisco's Accounts Payable be credited on May 8?

A) $2,500,000. 
B) $2,440,000. 
C) $1,600,000. 
D) $1,639,344. 
E) $1,666,667.

Quizplus · Accepted Answer

The Answer of Brisco Bricks purchases raw material from its foreign supplier, Bolivian Clay, on May 8. Payment of 2,000,000 foreign currency units (FC) is due in 30 days. May 31 is Brisco's fiscal year-end. The pertinent exchange rates were as follows:

For what amount should Brisco's Accounts Payable be credited on May 8?

A) $2,500,000. 
B) $2,440,000. 
C) $1,600,000. 
D) $1,639,344. 
E) $1,666,667.

Brisco Bricks Purchases Raw Material from Its Foreign Supplier, Bolivian