On November 1,2014,a U.S.company sold merchandise to a foreign company for 375,000 francs.The payment in francs is due on January 31,2015.The spot rate was as follows: $.20 per franc on November 1,2014;$.21 per franc on December 31,2014;and $.19 per franc on January 31,2015 when the payment was received.Which of the following incorrectly describes the accounting for this foreign currency transaction?

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November 1,2014 accounts receivable = 375,000 francs × $.20December 31,2014 accounts receivable = 375,000 francs × $.212014 transaction gain = 375,000 francs × $.01 ($.21 - $.20)