INTEREST REVENUE

On 1 April 2017, Jusco Limited made credit sales of $1,800,000 to a regular wholesale customer. According to the terms of payment, the credit sales were to be settled in 5 annual instalments of $536,961 per annum. Interest is charged at 15% per annum. The financial year end for Jusco Limited is 31 March.

Required

Prepare journal entries to account for the revenues earned for the year ended 31 March 2018. Assume that Jusco limited uses the net interest method to account for interest revenue.

Date	Annual Instalment	Interest Revenue 15%	Payment of Accounts Receivable	Balance of Accounts Receivable outstanding
1/4/2017
31/3/18

1/4/2017
31/3/2018