Est Selling Price / Resale

Value
(Reconditioning Cost)
(Normal Profit) {est SP after
RC * %}
(Cost to Sell / Disposal Cost)

Trade-In = FMV

Trade-In > FMV

(overallowance) (-)

T-In < FMV

(underallowance) (+)

Merch Inv T-In (T-In Value of Old Merchandise)

xx
Cash (DP)
cost of
xx
Inst A/R (Bal of Sales Price)
T-In
xx
Inst Sales (Full Amount of Sales Price)
xx
If reconditioning expense is actually incurred:
Reconditioning Expense
xx
Merch Inv T-in
xx
If perpetual (additional entry to record COGS):
COIS
xx
Merch Inv New
xx
If perpetual:
charged to over/under allowance on T-In Account

Merch Inv (NRV/FMV/AV) { collection}

xx
Overallowance on T-IN (T-in NRV) xx
Inst A/R
xx
Inst Sales (Selling Price)
xx

Merch Inv (NRV/FMV/AV) {collection}

xx
Inst A/R
Inst Sales (Selling Price)

xx

xx
Underallowance on T-IN (T-in
NRV)

xx

 treated as (reduction from) / addition to Inst

Sales

NADZ

Merch Inv T-In (NRV/FMV/AV)

Inst A/R
Inst Sales net (IS-OA)
xx

xx
xx

Merch Inv T-In (NRV/FMV/AV)

Inst A/R
Inst Sales net (IS+UA)
xx

xx
xx