Banyak Pandai has provided consultancy services to DEF Sdn Bhd in June 2022.

You are told that these services were conducted and completed in the same month of May 2022 itself. Banyak Pandai issued an invoice for an agreed sum of RM660,000. The payments for the said invoice to be received was agreed as follows:

1. 15 June 2022: 10% initial, i.e., RM66,000
2. The balance of RM594,000 to be paid two years later, on 15 June 2024

The normal credit term that Banyak Pandai allows for its customers is 60 days.

Required:

Based on the information above, you are to advise Banyak Pandai how the transaction concerned is to be accounted for in June 2022 in accordance with the requirements of MFRS 15 Revenue from Contract with Customers. Assume that the cost of capital is 8% per annum for Banyak Pandai. Show the relevant workings and accounting entries.

(10 marks)