(Answered) Question installment repossession entries selected

Accounting

Question: (Installment Repossession Entries) Selected transactions of TV Land Company are presented below.

1. A television set costing $540 is sold to Jack Matre on November 1, 2014, 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, 2014.

3. On December 31, 2014, the appropriate entries are made to record profit realized on the installment sales.

4. The first seven 2015 installments of $30 each are paid by Matre. (Make one entry.)

5. In August 2015, 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.

Instructions: Prepare journal entries to record the transactions above on the books of TV Land Company. Closing entries should not be made.

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