An American company makes a credit purchase of goods from a company in London for 1,000 British pounds. On the date of purchase, the exchange rate was $1.65 per pound. However, On the date of payment, the rate had declined to $1.60 per pound As a result, the American company would record an exchange gain of $50. an exchange loss of $1, 600. An exchange loss of $50. no exchange gain or loss. A tabulation of invoices at the end of the day showed $1, 600 in MasterCard invoices, which were deposited into a bank account at full value, less a 5 percent discount. The entry to record the above events would include an increase in Account Receivable for $1, 520. Cash for $1, 600. Sales for $1, 520. Credit Card Expense for $80. Use this inventory information for the month of July to answer the following question. Assuming that a periodic inventory system is used, what is cost of goods sold on a FIFO basis? $7, 696 $7, 736 $3, 664 $3, 704