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		1.04
3. Payable	1,920,000		1,500,000 pounds		1.30
4. Payable	270,000		2,000,000 Hong Kong dollars		0.13

Required

Prepare the adjusting entry recorded by McDonald's Corporation at December 31.

Description		Debit	Credit
Accounts receivable		Answer	Answer
Exchange gain		Answer	Answer
Accounts payable		Answer	Answer