Buraka Inc. sells goods on the installment basis and uses the installment-sales method. Due to a customer
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Buraka Inc. sells goods on the installment basis and uses the installment-sales method. Due to a customer default, Buraka repossessed merchandise that was originally sold for $800, resulting in a gross profit rate of 40%. At the time of repossession, the uncollected balance is $560, and the fair value of the repossessed merchandise is $275. Prepare Buraka's entry to record the repossession.
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Related Book For
Intermediate Accounting 2007 FASB Update Volume 2
ISBN: 9780470128763
12th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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