Mini-Case 6 Receivables

BKAR1013 FINANCIAL ACCOUNTING AND REPORTING I (A201)
MINI CASE 6

TOPIC 7: RECEIVABLES

Submission Guidelines:
1) Please answer all questions.
2) Please write your name, matric number, group on the header and page number on

the bottom of your answer document.
3) The mini case is an individual task, however discussion is allowed, but copying

other student’s answer is forbidden.
4) Your answer should be handwritten and subsequently scanned with a scanner or

mobile scanner apps in a combined PDF file. The scanned document must be
clear, easily readable and complete. Photo is not allowed.
5) Submit your scanned answer via UUM Online Learning within the allotted time and
period. Only one submission will be accepted.

QUESTION 1

On 1 March 2020, Maju Teras Bhd borrowed RM50,000 from MyBank Bhd and signed a 12%
one month note payable. MyBank Bhd charged 1% initial fee on the note. Maju Teras Bhd
assigned RM73,000 of its accounts receivable to MyBank Bhd as a security. During March
2020, Maju Teras Bhd collected RM70,000 of the assigned accounts receivable and RM3,000
of the sales were returned by the customers. Maju Teras Bhd paid the principal and interest on
note payable to MyBank Bhd on 1 April 2020.

REQUIRED:
Prepare all journal entries for Maju Teras Bhd if the company’s reporting date is on 31 March
2020.

QUESTION 2

Presented below is information from Endure Computers Bhd
July 1 Sold RM30,000 of computers to Ali Ahmad Sdn Bhd with terms 3/15, n/60. Endure

Computers uses the gross method to record cash discounts.
10 Endure Computers received payment from Ali Ahmad for the full amount owed from

the July transactions.
17 Sold RM250,000 in computers and peripherals to the Eagle Store with terms of 2/10,

n/30.
30 The Eagle Store paid Endure Computers for its purchase of July 17

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REQUIRED:
Prepare the necessary journal entries for Endure Computers Bhd.
QUESTION 3
On 1st September 2020, Tenang Jiwa Bhd used its receivables totalling RM350,000 as collateral
on a 250,000, 15% note from Senyuman Bank. Tenang Jiwa Bhd will continue to collect the
assigned receivables. Senyuman Bank will charge 2% as a finance charge which will be
deducted in advance on the 250,000 value of the note. Collections of receivables for September
is RM100,000, less cash discounts of RM800. On 1st October, Tenang Jiwa Bhd paid to the bank
the amount owed for September collection plus accrued interest. During October, Tenang Jiwa
Bhd collected the remaining accounts except for RM550 written off as uncollectible. On 1st
November, Tenang Jiwa Bhd paid to Senyuman Bank the remaining account owed plus accrued
interest.
REQUIRED:
Prepare the journal entries necessary for both Tenang Jiwa Bhd and Senyuman Bank.

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