On November 12, Kendra, Inc

On November 12, Kendra, Inc., a U.S. Company, sold merchandise on credit to Nakakura Company of Japan at a price of 1,500,000 yen. The exchange rate was $0.00837 per yen on the date of sale. On December 31, when Kendra prepared its financial statements, the exchange rate was $0.00843. Nakakura Company paid in full on January 12, when the exchange rate was $0.00861. On December 31, Kendra should prepare the following journal entry:

A) Debit Sales $90; credit Foreign Exchange Gain $90.
B) Debit Foreign Exchange Loss $90; credit Sales $90.
C) Debit Accounts Receivable-Nakakura Company $90; credit Foreign Exchange Gain $90.
D) Debit Foreign Exchange Loss $90; Accounts Receivable-Nakakura Company $90.
E) No journal entry is required until the amount is collected.