Calculate the exchange gain or loss

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Question - A review of Sara Company, a U.S. corporation, shows the following balances in accounts receivable detail at December 31, 2019, their fiscal year end. Receivables denominated in U.S. dollar $426,000. Receivable denominated in 40,000 Australian dollar $43,000, and Receivable denominated in 70,000 Canadian dollar $71,750 As Sara prepared to close their books, they noted that the December 31 exchange rates for the Australian dollar, Canadian dollar and Hong Kong dollar were $1.0366, $1.0301 and $0.1284, respectively.

Required - Calculate the exchange gain or loss to be included in the 2019 financial statements, and determine the amount of Accounts Receivable that will be included on the December 31, 2019 balance sheet.

Reference no: EM132622333

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