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    BeyondTheBooks's Avatar
    BeyondTheBooks Posts: 1, Reputation: 1
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    #1

    Oct 5, 2009, 04:50 PM
    What is the journal entry for a business items repossessed
    What if the journal entry for a business for equipment, items etc that have been repossessed and you need to show it on the books.
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    Oct 6, 2009, 06:14 AM

    Debit Repossessed Inventory
    Debit Unrealized Gross profit
    Credit Installment Receivable

    Based on this entry, you get the recoverable value of the inventory which may be different from its realizable value. The difference is the gain or loss on repossession
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