Tuliptime, Inc. sold American fashions to a Japanese company at a price of 3.8 million yen. On the sale date, the exchange rate was $0.01 per Japanese yen, but when Tuliptime received payment from its customer, the exchange rate was $0.0103 per yen. When the foreign receivable was collected, Tuliptime:

Multiple Choice

Debited Cash for $38,000.

Credited Gain on Fluctuation of Foreign Currency for $1,140.

Debited Loss on Fluctuation of Foreign Currency for $1,140.

Credited Sales for $1,140.