Garliet Company has entered into a long-term assignment agreement with CDE Bank. Under the terms of the financing agreement, Garliet Company received 80% of the value of all accounts assigned and is charged a 2% service charge, which is based upon the amount of cash received. In addition, the CDE Bank charges Garliet 10% interest on the outstanding loan. Garliet Company will continue to collect the assigned receivables. The following are the transactions related to the assignment:

Jan. 1, 202X Accounts receivable of P1,000,000 are assigned.

Jan. 15, 202X Garliet Company approves a sales return of P10,000 on the assigned accounts.

Jan. 31, 202X Collections are made on P600,000 of assigned accounts. This amount and one month's interest on the outstanding loan nare remitted to the finance company.

Feb. 28, 202X P300,000 of assigned accounts are collected, and the remaining loan is repaid.

Requirements:

a. Prepare the journal entry on Garliet Company's book to record the transactions.

b. Assuming that the assignment agreement is on a notification basis, prepare the journal entry to record the transactions in the books of Garliet Company.