Q/ Prepare journal entries for Mars Co. for:

(a) Accounts receivable in the amount of SAR500,000 were assigned to Utley Finance Co. by Mars as security for a loan of SAR425,000. Utley charged a 3% commission on the accounts; the interest rate on the note is 12%.

(b) During the first month, Mars collected SAR200,000 on assigned accounts after deducting SAR450 of discounts. Mars wrote off a SAR530 assigned account.

(c) Mars paid to Utley the amount collected plus one month's interest on the note.