Thompson Industries Thompson Industries Is a Real Estate Developer That Sells Plots

Essay

Thompson Industries
Thompson Industries is a real estate developer that sells plots of land. On January 1 of the current year, the company sold a plot of land for $1,200,000. The land cost Thompson $780,000. Terms of the sale required a down payment of $300,000 and installments of $300,000 on January 1 of the next three years.
-Refer to Thompson Industries. Assume that Thompson Industries uses the installment sales method. The buyer of the land defaulted on the sales agreement after making the down payment and the first installment. At the time of repossession, the land was worth $700,000.
Required:
Prepare the journal entry to record the repossession.