Investor · Little Rock, AR · Member since 2016 · 121 posts · 37 votes
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?
Do not confuse yourself. Look at the reports, are your balances reflecting accurately?
If not offset it, reverse it, adjust it or...
IT is not about the journal entry, it is about your financial reports in your accounting software that you need to look, verify and then take the step for accurate numbers.