Selected transactions of TV Land Company are presented below. 1. A television set costing $540 is sold to Jack Matre on November 1, 2012, for $900. Matre makes a down payment of $300 and agrees to pay $30 on the first of each month for 20 months thereafter. 2. Matre pays the $30 installment due December 1, 2012. 3. On December 31, 2012, the appropriate entries are made to record profit realized on the installment sales. 4. The first seven 2013 installments of $30 each are paid by Matre. 5. In August 2013, the set is repossessed after Matre fails to pay the August 1 installment and indicates that he will be unable to continue the payments. The estimated fair value of the repossessed set is $100. How much is the loss on repossession on August 2013?
Selected transactions of TV Land Company are presented below.
1. A television set costing $540 is sold to Jack Matre on November 1, 2012, for $900. Matre makes a down payment of $300 and agrees to pay $30 on the first of each month for 20 months thereafter.
2. Matre pays the $30 installment due December 1, 2012.
3. On December 31, 2012, the appropriate entries are made to record profit realized on the installment sales.
4. The first seven 2013 installments of $30 each are paid by Matre.
5. In August 2013, the set is repossessed after Matre fails to pay the August 1 installment and indicates that he will be unable to continue the payments. The estimated fair value of the repossessed set is $100.
How much is the loss on repossession on August 2013?
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