How much cash was paid to settle the account payable

Reference no: EM132985109

Question: On 1 March 2022 possum ltd, an Australian entity, purchases US 1.5 million of inventory from Lincoln inc a us entity. The amount is paid on 1 August 2022. Possum ltd has a 30june financial year end.

Additional information
Date Spot rate
1 march 2022. A1.00 = US 0.70
30 June 2022. A 1.00 = US 0.72
1 August 2022. A 1.00 = US 0.70

- at what amount the purchase should be recorded on 1 March 2022
- on 30 June 2022, will there be a foreign exchange gain or loss and how much
- on 1 August 2022 how much cash was paid to settle the account payable

Reference no: EM132985109

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