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On 1 September 2021, ABC Bhd used its receivables totalling RM 350,000 as collateral on : 250,000, 15% note from CIMB Bank. ABC Bhd will contimue to collect the assigned receivables. CIMB Bank will charge 2% as a fmance charge which will be deducted in advance on the 250,000 value of the note. Collections of receivables for September is RM100,000,les: cash discounts of RM800. On 1 October, ABC Bhd paid to the bank the amount owed fo September collection plus accrued interest. During October, ABC Bhd collected the remaining accounts except for RM550 written off as uncollectible On 1 November, ABC Bhd paid to CIMB Bank the remaining account owed plus accrued interest. REQUIRED:

On 1 September 2021, ABC Bhd used its receivables totalling RM 350,000 as collateral on : 250,000, 15% note from CIMB Bank. ABC Bhd will contimue to collect the assigned receivables. CIMB Bank will charge 2% as a fmance charge which will be deducted in advance on the 250,000 value of the note. Collections of receivables for September is RM100,000,les: cash discounts of RM800. On 1 October, ABC Bhd paid to the bank the amount owed fo September collection plus accrued interest. During October, ABC Bhd collected the remaining accounts except for RM550 written off as uncollectible On 1 November, ABC Bhd paid to CIMB Bank the remaining account owed plus accrued interest. REQUIRED:

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 12MC: (Appendix 14.1)Pamlico Company has a 500,000, 15%, 3-year note dated January 1, 2019, payable to...
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QUESTION 3 On 1 September 2021, ABC Bhd used its receivables totalling RM 350,000 as collateral on a www 250,000, 15% note from CIMB Bank. ABC Bhd will contimue to collect the assigned receivables. CIMB Bank will charge 2% as a fimance 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 1 October, ABC Bhd paid to the bank the amount owed for September collection plus accrued interest. During October, ABC Bhd collected the remaining accounts except for RM550 written off as uncollectible. On 1 November, ABC Bhd paid to CIMB Bank the remaining account owed plus accrued interest. REQUIRED: Prepare the joumal entries necessary for both ABC Bhd and CIMB Bank.
Transcribed Image Text:QUESTION 3 On 1 September 2021, ABC Bhd used its receivables totalling RM 350,000 as collateral on a www 250,000, 15% note from CIMB Bank. ABC Bhd will contimue to collect the assigned receivables. CIMB Bank will charge 2% as a fimance 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 1 October, ABC Bhd paid to the bank the amount owed for September collection plus accrued interest. During October, ABC Bhd collected the remaining accounts except for RM550 written off as uncollectible. On 1 November, ABC Bhd paid to CIMB Bank the remaining account owed plus accrued interest. REQUIRED: Prepare the joumal entries necessary for both ABC Bhd and CIMB Bank.
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