On June 18, Wyman Company (a U.S. Company) sold merchandise to the Nielsen Company of Denmark for €60,000 (Euros), with a payment due in 60 days. If the exchange rate was $1.35 per euro on the date of sale and $1.14 per euro on the date of payment, Wyman Company should recognize a foreign exchange gain or loss in the amount of:

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Wyman Company would recognize a foreign exchange loss because the euro depreciated against the dollar. The initial value of the receivable was €60,000 * $1.35 = $81,000. At the payment date, the value was €60,000 * $1.14 = $68,400. The loss is $81,000 - $68,400 = $12,600.

On June 18, Wyman Company (A U