On September 3, 2008, Jackson Corporation purchases goods for a U.S. dollar equivalent of $17,000 from a Swiss company. The transaction is denominated in Swiss francs (SFr). The payment is made on October 10. The exchange rates were:

Date	Exchange Rate
September 3	1 Swiss franc- $0.85
October 10	1 Swiss franc- $0.90

What entry is required to revalue foreign currency payable to U.S. dollar equivalent value on October 10?

a.

Debit Foreign Currency Transaction Loss for $1,000 and credit Accounts Payable (SFr) for $1,000.

b.

Debit Accounts Payable (SFr) for $850 and credit Foreign Currency Transaction gain for $850.

c.

Debit Foreign Currency Transaction Loss for $850 and credit Accounts Payable (SFr) for $850.

d.

Debit Accounts Payable (SFr) for $1,000 and credit Foreign Currency Transaction gain for $1,000.