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Updated almost 2 years ago,

User Stats

70
Posts
37
Votes
Robert L.
  • Investor
  • Jacksonville, FL
37
Votes |
70
Posts

Journal entry question for owner financed note

Robert L.
  • Investor
  • Jacksonville, FL
Posted

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

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