On November 12, Kendra, Inc., a U.S. Company, sold merchandise on credit to Nakakura Company of Japan at a price of 1,540,000 yen. The exchange rate was $.00841 per yen on the date of sale. On December 31, when Kendra prepared its financial statements, the exchange rate was $.00847. Nakakura Company paid in full on January 12, when the exchange rate was $.00865. On December 31, Kendra should prepare the following journal entry (Do not round your intermediate calculations and round your final answer to nearest dollar amount):
- Debit Sales $92; credit Foreign Exchange Gain $92.
- Debit Foreign Exchange Loss $92; credit Sales $92.
- Debit Accounts Receivable-Nakakura Company $92; credit Foreign Exchange Gain $92.
- Debit Foreign Exchange Loss $92; Accounts Receivable-Nakakura Company $92.
- No journal entry is required until the amount is collected.