(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, 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. (Make one entry.)
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.
Instructions
Prepare journal entries to record the transactions above on the books of TV Land Company. Closing entries should not be made.