Use the following information to answer question$($s$)7$ and $8.$

On November $1,20$X$4,$ Rolleks Corporation sold merchandise to Watchem Corporation, a Swiss firm. Rolleks measured and

recorded the account receivable from the sale at $$107,100.$ Watchem paid for this account on November $30,20$X$4.$ Spot rates

for Swiss francs on November $1$ and November $30,$ respectively, were $$1\mathrm{.}05$ and $$1\mathrm{.}02.$

If the sale of the merchandise was denominated in Swiss francs, the November $30$ entry to record the receipt of payment from

Watchem included a:

Select one:

a$.$ credit to Accounts Receivable for $$104,040.$

b$.$ credit to Exchange Gain for $$3,060.$

c$.$ debit to Cash for $$107,100.$

d$.$ debit to Exchange Loss for $$3,060.$

If the sale of merchandise is denominated in dollars, the November $30$ entry to record receipt of the payment from Watchem

included a:

Select one:

a$.$ credit to Accounts Receivable for $$104,040.$

b$.$ credit to Exchange Gain for $$3,060.$

c$.$ debit to Cash for $$107,100.$

d$.$ debit to Exchange Loss for $$3,060.$