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Updated almost 2 years ago,
Journal entry question for owner financed note
I sold a house with owner financing. Buyer put a down payment.
I am carrying a note for the balance which buyer is making monthly payments.
How would you record the journal entries for this type of transaction in cash method of accounting with the following information and monthly payment? I am not sure how to handle the note if it is cash method as note does not exist in cash method.
$10k down payment
$45K note
$13K accumulated depreciation
$29K cost of property
Thank you!
Rob