On January 1, 2014, XY retail store sold a TV set to customer AB on...
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Accounting
On January 1, 2014, XY retail store sold a TV set to customer AB on credit for $450; AB will make monthly payments. Because of non-payment, XY repossessed the TV set when AB still owed $250. XY estimates reliably that the repossessed set can be resold for $150 cash after spending $40 to repair it and after incurring a selling cost of $10 cash.
(a) Give the entry by XY to record the repossession (assume a perpetual inventory system). (b) Give the entry to record the actual repair cost of $45. (c) Give the entry to record the resale of the repossessed set at a cash price of $150 and cash payment of the selling cost of $10.
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