Question
At the end of the lease term, when Tom is returning the asset to John, Tom and John learn that asset is only worth $10,000
At the end of the lease term, when Tom is returning the asset to John, Tom and John learn that asset is only worth $10,000 (Tom guaranteed $20,000). What entry would John make upon the return of the asset?
I think it's Dr Inventory (10000) & Cash (10000) and Cr Lease Receivable (20000) but I'm not sure.
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Advanced Accounting
Authors: Debra JeterJames Reeve, Jonathan Duchac, Horace Brock, Paul Chaney
4th Edition
0470506989, 978-0470506981
