Chretien Co., a Canadian company, sold iron ore to a foreign company for U.S. $100,000, with payment

Question:

Chretien Co., a Canadian company, sold iron ore to a foreign company for U.S. $100,000, with payment to be received on February 1, 2013. Chretien entered into a contract to deliver U.S. $100,000 in exchange for Canadian dollars but decided not to apply hedge accounting. The following are the events related to this sale and the exchange rates during 2012 and 2013:

Required
For contracts expiring on February 1, 2013:
(a) What is the amount of revenue for this sale on Chretien€™s income statement?
(b) What is the final amount of cash received in Canadian dollars from the combination of the sale and the forward contract?
(c) What is the exchange gain or loss on the accounts receivable for the year ended December 31, 2012?
(d) How should the exchange gain or loss on the accounts receivable be reported?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...