A U.S company sells a new piece of equipment on credit to a British customer for 10,000 GBP in January ,

When the U.S. company sold the equipment , the exchange rate was 0.5 GBP per USD , but when the payment was received in March, the exchange rate was 0.75 GBP per USD.

How should the U.S. company record the payment in March from their British customer?

Debit Credit

Foreign Currency Transaction Loss $6,667

Cash $13,333

Account Receivable $20,000

Debit Credit

Accounts Receivable ( GBP) $20,000

Foreign Currency Transaction Gain $3,333

Cash $16,667

Debit Credit

Foreign Currency Transaction Loss $5,000

Cash $15,000

Account Receivable ( GBP) $20,000

Debit Credit

Accounts Receivable ( GBP) $20,000

Foreign Currency Transaction $5,000

Cash $15,000