On January 1, 2012, Outreach Incorporated sold services to a Canadian supply company and accepted a three-year note in the amount of 11,000 Canadian Dollars. Assume that exchange rates between the U.S. dollar and the Canadian dollar are as follows:

Provide the journal entries (in U.S. dollars) prepared by Outreach to record the receipt of the note and the exchange gains/losses recognized on December 31, 2012, and December 31, 2013. Ignore any interest on the note.

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U.S. Dollars Per Canadian Dollars Date January 1, 2012 December 31, 2012 S0.95 0.99 0.90 December 31, 2013