On November 1, 2017, National Company Sold Inventory to a Foreign

On November 1, 2017, National Company sold inventory to a foreign customer. The account will be settled on March 1 with the receipt of 200,000 foreign currency units (FCU) . On November 1, National also entered into a forward contract to hedge the exposed asset. The forward rate is $0.80 per unit of foreign currency. National has a December 31 fiscal year-end. Spot rates on relevant dates were: What will be the adjusted balance in the Accounts Receivable account on December 31, and how much gain or loss was recorded as a result of the adjustment?

A) Receivable Balance, $170,000; Gain/Loss Recorded, $4,000 gain
B) Receivable Balance, $162,000; Gain/Loss Recorded, $4,000 loss
C) Receivable Balance, $168,000; Gain/Loss Recorded, $2,000 gain
D) Receivable Balance, $164,000; Gain/Loss Recorded, $2,000 loss