On March 1, Friedle Import-Export Company sells merchandise costing 75,000 Mexican pesos.

Payment will be made in pesos, on June 1. The exchange rates of pesos for $1 were as follows:

March 1.......................$1 = 10.9 pesos

June 1.........................$1 = 11.4 pesos

Round all answers to the nearest dollar.

Required:

1. What is the receivable in dollars on March 1?

2. What is the dollar value of the amount paid in pesos on June 1?

3. If Friedle is paid on June 1, is there an exchange gain or loss? If so, how much is it?