On November 12, Higgins, Inc., a U.S. Company, sold merchandise on credit to Kagome of Japan at a price of 1,600,000 yen. The exchange rate was $0.00838 on the date of sale. On December 31, when Higgins prepared its financial statements, the exchange rate was $0.00844. Kagome paid in full on January 12, when the exchange rate was $0.00862. On January 12, Higgins should prepare the following journal entry:

Debit Cash $13,792; credit Accounts Receivable-Kagome $13,408; credit Foreign Exchange Gain $384.

Debit Cash $13,408; debit Foreign Exchange Loss $384; credit Accounts Receivable-Kagome $13,792.

Debit Cash $13,792; credit Accounts Receivable-Kagome $13,504; credit Foreign Exchange Gain $96.

Debit Cash $13,504; debit Foreign Exchange Loss $96; credit Accounts Receivable-Kagome $13,792.

Debit Cash $13,792; credit Accounts Receivable-Kagome $13,504; credit Foreign Exchange Gain $288.