On November 12,Higgins,Inc

On November 12,Higgins,Inc.,a U.S.Company,sold merchandise on credit to Kagome of Japan at a price of 1,500,000 yen.The exchange rate was $0.00837 per yen on the date of sale.On December 31,when Higgins prepared its financial statements,the exchange rate was $0.00843.Kagome paid in full on January 12,when the exchange rate was $0.00861.On December 31,Higgins should prepare the following journal entry:

A) Debit Sales $90; credit Foreign Exchange Gain $90.
B) Debit Foreign Exchange Loss $90; credit Sales $90.
C) Debit Accounts Receivable-Kagome $90; credit Foreign Exchange Gain $90.
D) Debit Foreign Exchange Loss $90; Accounts Receivable-Kagome $90.
E) No journal entry is required until the amount is collected.

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