1.04 1.30 Adjusting Entry at Balance Sheet Date McDonald's Corporation has the following receivables and payables denominated in foreign currencies, prior to closing on December 31. Item Current $ balance FC balance December 31 spot rate 1. Receivable $1,165,000 1,000,000 euros $1.18 2. Receivable 512.500 500,000 swiss francs 3. Payable 1,920,000 1,500,000 pounds 4. Payable 270,000 2,000,000 Hong Kong dollars Required Prepare the adjusting entry recorded by McDonald's Corporation at December 31. Description Debit Credit Accounts receivable Exchange gain Accounts payable 0 0.13 X 0 X