Sensamatic, Incorporated, purchased cameras from a Japanese company at a price of $4\mathrm{.}0$ million yen. On the purchase date, the exchange rate was $$0\mathrm{.}0100$ per Japanese yen, but when Sensamatic paid the liability, the

exchange rate was $$0\mathrm{.}0103$ per yen. When this foreign account payable was paid, Sensamatic recorded a journal entry that included a:

Multiple Choice

Debit to Inventory of $$1,200.$

Loss on Fluctuations in Foreign Exchange Rate of $$1,200.$

Credit to Accounts Payable of $$41,200.$

Gain on Fluctuations in Foreign Exchange Rate of $$1,200.$