Can you assist me getting started on this assignment?
In evaluating the acquisition, Ruth and Bob are a little concerned. Quicker is expected to make a 400,000 yen sale to a Japanese company with credit terms of net 150 days. The yen has been falling against the dollar, so they are expecting a loss.
Write a memo with the following information:
What is the entry to record the 400,000 yen sale on Quicker's books assuming the yen is 0.92 against the dollar?
How can Ruth and Bob mitigate the foreign currency loss?