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On November 12, Higgins, Inc., a U.S. Company, sold merchandise on credit to Kagome of...

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On November 12, Higgins, Inc., a U.S. Company, sold merchandise on credit to Kagome of Japan at a price of 2,500,000 yen. The exchange rate was $0.00847 on the date of sale. On December 31, when Higgins prepared its financial statements, the exchange rate was $0.00853. Kagome paid in full on January 12, when the exchange rate was $0.00871. On January 12, Higgins should prepare the following journal entry: Multiple Choice Debit Cash $21,775; credit Accounts Receivable-Kagome $21,175; credit Foreign Exchange Gain $600. O Debit Cash $21,775; credit Accounts Receivable-Kagome $21,325; credit Foreign Exchange Gain $450. O Debit Cash $21,175; debit Foreign Exchange Loss $600; credit Accounts Receivable-Kagome $21,775. Debit Cash $21,175; debit Foreign Exchange Loss $150; credit Accounts Receivable-Kagome $21,325. o Debit Cash $21,325; credit Accounts Receivable-Kagome $21,175; credit Foreign Exchange Gain $150. pelos cansa

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