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 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 January 12,Higgins should prepare the following journal entry:

A) Debit Cash $12,915;credit Accounts Receivable-Kagome $12,555;credit Foreign Exchange Gain $360.
B) Debit Cash $12,555;debit Foreign Exchange Loss $360;credit Accounts Receivable-Kagome $12,915.
C) Debit Cash $12,915;credit Accounts Receivable-Kagome $12,645;credit Foreign Exchange Gain $90.
D) Debit Cash $12,645;debit Foreign Exchange Loss $90;credit Accounts Receivable-Kagome $12,915.
E) Debit Cash $12,915;credit Accounts Receivable-Kagome $12,645;credit Foreign Exchange Gain $270.

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