In 2010, Bill is unable to pay his car loan. The bank repossesses the car and...
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In 2010, Bill is unable to pay his car loan. The bank repossesses the car and sells it for $4,000, leaving a deficiency balance of $2,000. In 2020, Bill has been working regularly and trying to rebuild his credit. He has accumulated $2,000 in cash and he brings it to the bank to pay the deficiency. What entry does the bank make to record this activity? In 2010, Bill is unable to pay his car loan. The bank repossesses the car and sells it for $4,000, leaving a deficiency balance of $2,000. In 2020, Bill has been working regularly and trying to rebuild his credit. He has accumulated $2,000 in cash and he brings it to the bank to pay the deficiency. What entry does the bank make to record this activity?
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Answer rating: 100% (QA)
The bank would make the following journal entry to record the payment of the deficien... View the full answer
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
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