the jamison appliance company began business on january 1 2014 the company decided f 4375889

The Jamison Appliance Company began business on January 1, 2014. The company decided from the beginning to grant allowances on merchandise traded in as partial payment on new sales. During 2015, the company granted trade-in allowances of $64,035. The wholesale value of merchandise traded in was $40,875. Trade-ins recorded at $39,000 were sold for their wholesale value of $27,000 during the year. The following summary entries were made to record annual sales of new merchandise and trade-in sales for 2015 When a customer defaults on the accounts receivable contract, the merchandise is repossessed. During 2015, the following repossessions occurred: The wholesale value of these goods is estimated as follows: (a) Goods repossessed during year of sale are valued at 50% of original sales price. (b) Goods repossessed in later years are valued at 20% of original sales price. Instructions: 1. At what values should Jamison Appliance report the trade-in and repossessed inventory at December 31, 2015? 2. Give the entry that should have been made to record the repossessions of 2015. 3. Give the entry that is required to correct the trade-in summary entries. View Solution:
The Jamison Appliance Company began business on January 1 2014

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