Bookkeeping after Buyer Return My Seller Finance Property

[Andrew Yu]

I sold a property a few months ago via seller finance. The buyer is backing out due to family emergency. How should I do the bookkeeping on it? My contract says in case of default, all the moneys paid will be treated as rent. Here is the journal entry on the original seller finance

Specifically what to do with Down Payment to Receive, Loan Receivable account, and Property Sale Profit account?

[Kevin S.]

@Andrew Yu I'd just reverse the entire entry, and then re-book the months that the "buyer" owned the property as rent.