On November 15, 2019, a U.S. Company sold goods to a customer in England for 30,000 pounds. Payment to be made on January 15, 2020. Exchange rates were as follows: November 15, 2019, 1 pound = $0.75, December 31, 2019 1 pound = $0.80 and January 15, 2020, 1 pound = $0.78. The Journal entry in the book of the U.S. Company on 15/01/2020 is:

a.

Dr. Cash $23,400, Dr. Exchange loss $600 and Cr. Accounts receivable $24,000.

b.

Dr. Accounts receivable $23,400 and Cr. Cash $23,400.

c.

Dr. Cash $23,400 and Cr. Accounts receivable $23,400.

d.

Dr. Cash $24,000, Cr. Exchange Gain $600 and Cr. Accounts receivable $23,400.

On November 1, 2019, Lama Corp., a U.S. firm, sold merchandise to a foreign firm for 20,000 FC. Lama will be paid on November 1, 2019, in FC. The spot rates on selected dates were as follows: November 1, 2019 1 FC = $0.50, December 31, 2019 1 FC = $0.55 and January 31, 2020 1 FC = $0.55. Lama has a December 31-year, the gains/losses to be recorded for 2019 is:

a.

$ 0.

b.

Gains of $1,000.

c.

Gains of $2,000.

d.

Losses of $1,000.