Explain how each of the following transactions will be classified and recorded in the debit and credit of the U.S. balance of payments and describe how each transaction would be classified.

(1) Boeing Corporation exported a Boeing 747 aircraft to Japan Airlines for $100 million, and that Japan Airlines pays from its dollar bank account kept with Chase Manhattan bank in New York City

(2) An American factory in China uses part of its local profit to give gifts to its Chinese customers.