question crawford imports inc was involved in two default andrepossession cases duri 4286230
Question
Crawford Imports Inc. was involved in two default andrepossession cases during the year:
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1. A refrigerator was sold to Cindy McClary for $3,800,including a 26% markup on selling price. McClary made a downpayment of 23%, 4 of the remaining 16 equal payments, and thendefaulted on further payments. The refrigerator was repossessed, atwhich time the fair value was determined to be $2,700. |
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2. An oven that cost $2,550 was sold to Travis Longman for$3,400 on the installment basis. Longman made a down payment of$600 and paid $110 a month for 5 months, after which he defaulted.The oven was repossessed and the estimated fair value at time ofrepossession was determined to be $2,600. |
Prepare journal entries to record each of these repossessions usinga fair value approach. (Round answers to 0 decimalplaces, e.g. 5,275. Credit account titles are automaticallyindented when amount is entered. Do not indentmanually.)