Installment sales-default and repossession

Reference no: EM13765289

(Installment Sales-Default and Repossession)

Green Acres Ltd. was involved in two default and repossession cases during the year:

1. A home theatre system was sold to Jonathan Quick for $2,400, including a 40% markup on selling price. Quick made a down payment of 10% plus four of the remaining 24 equal payments of $90, and then defaulted on further payments. The home theatre system was repossessed, at which time the fair value was determined to be $475.

2. A TV that cost $1,500 was sold to Haji Jari for $3,180 on the installment basis. Jari made a down payment of $300 and paid $160 a month for 10 months, after which he defaulted. The TV was repossessed, and the estimated value at time of repossession was determined to be $850.

Instructions

Prepare journal entries to record each of these repossessions. (Ignore interest charges.)

Reference no: EM13765289

Questions Cloud

Required return differs from the coupon interest rate : Pecos Manufacturing has just issued a 15-year, 12% coupon interest rate, $1,000-par bond that pays interest annually. The required return is currently 14%, and the company is certain it will remain at 14% until the bond matures in 15 years.

Ruling on state v stu dents : Ruling on State v. Stu Dents, Write a 1,050- to 1,400-word proposal that includes two different sentencing arguments formulated by your team

Installment-sales method and cost-recovery method : On April 1, 2014, Joy Ltd. sold land for $600,000. The note will be collected as follows: $100,000 in 2014, $200,000 in 2015, and $300,000 in 2016. The property had cost Joy $122,000 when it was purchased in 2001.

What were the rates of the crime for each area : Write a 700- to 1,050-word paper, comparing the occurrence of that offense in the selected areas. What were the rates of the crime for each area

Installment sales-default and repossession : Green Acres Ltd. was involved in two default and repossession cases during the year:

What are the reasons for your recommendation : You are the criminologist advisor to a member of the state legislature. The legislature soon votes on a bill that would double the maximum prison term for anyone convicted of armed robbery, What are the reasons for your recommendation

Installment sales-default and repossession : X-Run Inc. uses the installment-sales method in accounting for its installment sales. On January 1, 2014, X-Run had an installment account receivable from Herman Pringle with a balance of $3,900.

Describes the security authentication process : Discuss how this and other information security considerations will affect the design and development process for new information systems.

Theories of crime videos in cj criminology : Resource: Theories of Crime videos in CJ Criminology, located on the student website. Social Structure Theories, Theory Explained

User Account

All Pages