Account for repossessed property that was then sold at a loss
A c-corp sold a piece of real estate and carried the note. It's in the books as a Note Receivable asset. The buyer abandoned the property. It was then repossessed and later sold (cash) to someone else at much less than the N/R was to be. How do I best account for the sale and loss?
Account for repossessed property that was then sold at a loss
The sales price is posted to the note receivable, the balance is still owed by the original signor of the note. If you are not going after him in court for repayment, then that balance is bad debt expense
Account for repossessed property that was then sold at a loss
The sales price is posted to the note receivable, the balance is still owed by the original signor of the note. If you are not going after him in court for repayment, then that balance is bad debt expense
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