1. Export Company had a trade account receivable from a foreign customer stated in the local currency of the foreign customer. The trade account receivable for 900,000 local currency units (LCU) had been restated to $315,000 in Export’s June 30, 2005, balance sheet. On July 26, 2005, the account receivable was collected in full when the exchange rate was 1⁄3. The journal entry (explanation omitted) that Export prepares to record the collection of this trade account receivable is:

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a. Cash 300,000 Trade Accounts Receivable 300,000 b. Cash 300,000 Foreign Currency Transaction Gains and Losses 15,000 Trade Accounts Receivable 315,000 c. Cash 300,000 Foreign Currency Translation Adjustments 15,000 Trade Accounts Receivable 315,000 d. Cash 315,000 Trade Accounts Receivable 315,000