Mozzie Ltd has a functional currency of A$. On 1 April 2023, Mozzie Ltd sells goods to a customer on credit terms for US$80 000. On 1 August 2023, cash is received from the customer to settle the invoice Exchange rates are:

1 April 2023 US$1.00 = A$1.30

30 June 2023 US$1.00 = A$1.55

1 August 2023 US$1.00 = A$1.45

What is the journal entry at the date of cash receipt on 1 August 2023?

a. DR. Cash $55 172 CR. Foreign Exchange Gain $3 559 CR. Accounts Receivable $51 612

b. DR. Cash $116 000 DR. Foreign Exchange Loss $8 000 CR. Accounts Receivable $124 000

c. DR. Cash $124 000 CR. Foreign Exchange Gain $8 000 CR. Accounts Receivable $116 000

d. DR. Cash $116 000 CR. Foreign Exchange Gain $20 000 CR. Accounts Receivable $104 000