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On 1 April 2020, Jeniang Sdn Bhd assigns its account receivables RM400,000 to Worthy Bank as collateral for a RM300,000 note. Worthy Bank charge 1
On 1 April 2020, Jeniang Sdn Bhd assigns its account receivables RM400,000 to Worthy Bank as collateral for a RM300,000 note. Worthy Bank charge 1 percent of the assigned receivables and interest of the note of 6%. Jeniang Sdn Bhd collects its account receivables every month and uses the collected money to pay Worthy Bank. Followings are the transaction that has occurred. 30 April, Jeniang Sdn Bhd collects RM50,000 from its customer. The customer paid within the discount period and received RM1,000 cash discount. 1 May, Jeniang Sdn Bhd pays Worthy Bank. 29 May, the customer pays RM100,000 to Jeniang Sdn. Due to some defects on the products bought from Jeniang, the customer made sales returns of RM800. 2 June, Jeniang Sdn Bhd pays Worthy Bank. 29 June, Jeniang successfully collects the remaining amount of its assigned accounts receivables from its customer. 1 July, Jeniang Sdn Bhd pays Worthy Bank. Required: Prepare journal entries for the above transactions
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