On November 1, 2020, Bita Co., a Saudi Co. sold goods on account to Nile Co., an Egyptian Co. for $40,000 ($1 = SR 3), On December 31 (the end of the financial year) the exchange rate was $1= SR5), settlement is made on February 1, 2021 ($1 = SR 4). The journal entry in Bita Co. book on December 31 is

2. 1. Accounts receivables debit 80,000 and exchange gain credit 80,000.

   2. None of the other answers.

   3. Accounts receivables debit 80,000 and sales credit 80,000.

   4. exchange loss debit 80,000 and Accounts receivable credit 80,000.