On 1 January 2021, FGC Bhd sold a vending machine to YOX Bhd under a hire-purchase agreement. Cost Cash price Deposit RM 18,000 11,200 1,150 with interest rate charged of 4% Installment payment paid for the period of two (2) years at the end of each month starting from 31 January 2021. On 1 September 2021, FGC Bhd discovered that YOX Bhd defaults on payments since June 2021. After serving the notice of intention to repossess to YOX Bhd, the company repossessed the vending machine on 30 September 2021, with repossession cost and storage cost of RM150 and RM80 respectively. YOX Bhd decided to let the machine be repossessed. The market price for the identical vending machine is RM10,700. YOX Bhd used net method to account for the hire purchase and a sum-of-the-years method to compute the interest expense. FGC Bhd employed sales method to account for hire purchase and a straight-line method to compute the interest revenue. YOX Bhd recognized the interest on each of the instalment date whereas FGC Bhd recognized the interest at the end of the accounting period. REQUIRED: (Round your answer to the nearest RM) (a) (b) (c) (d) (e) Determine the hire-purchase price and total interest for YOX Bhd. Show your workings. (3 Marks) Prepare the journal entries for YOX Bhd to record the transaction on 1 January 2021 and 31 January 2021. (3 Marks) Compute the amount to be paid to or to be received from YOX Bhd for the settlement of the repossession on 31 December 2021. (5 Marks) Referring to the default in payment starting June 2021, discuss and justify the implication of the instalment payment made prior to the repossession of the vending machine. (2 Marks) Assuming that YOX Bhd failed to make instalment payments from August 2021, discuss the right to repossess for FGC Bhd according to Section 16 (1) of Hire Purchase Act 1967. (2 Marks)