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#2112406 - 12/28/16 10:09 PM Accounting question
INOH Offline
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Joined: Jul 2012
Posts: 345
Northeast
The bank repossessed a vehicle on a loan in the amount of $26,000... 6,000 was charged off. The bank was able to sell the vehicle for the 26,000. how do we account for the 6,000? do we credit it to gains or do we credit the charged off loan?

thanks in advance,
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General Discussion
#2112409 - 12/28/16 10:17 PM Re: Accounting question INOH
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
You credit both the loan and treat it as a recovery.
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#2112511 - 12/29/16 06:43 PM Re: Accounting question rlcarey
INOH Offline
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Joined: Jul 2012
Posts: 345
Northeast
when you say to credit both... you mean credit the 6,000 to the charged off loan and the 20,000 to repo assets?
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#2112523 - 12/29/16 06:59 PM Re: Accounting question INOH
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Not knowing how you have your accounts set-up, you should be asking your external accountants this question.
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