TRADE-INS Trade-In = FMVMerch Inv T-In (T-In Value of Old Merchandise)xxCash (DP)xxcost ofInst A/R (Bal of Sales Price)xx T-InInst Sales (Full Amount of Sales Price)xx

If reconditioning expense is actually incurred: Reconditioning Expense xxMerch Inv T-inxx

If perpetual (additional entry to record COGS): COIS xxMerch Inv Newxx

Trade-In > FMV (overallowance) (-)

If perpetual: charged to overallowance on T-In Account Merch Inv (NRV/FMV/AV) xx {viewed as collection} Overallowance on T-IN (T-in NRV)xx Inst A/Rxx Inst Sales (Selling Price)xx

treated as reduction from Inst Sales Merch Inv T-In (NRV/FMV/AV)xx Inst A/Rxx Inst Sales net (IS-OA)xx

T-In < FMV (underallowance) (+)

If perpetual: charged to underallowance on T-In Account Merch Inv (NRV/FMV/AV) xx {viewed as collection} Inst A/Rxx Inst Sales (Selling Price)xx Underallowance on T-IN (T-in NRV)xx

treated as addition to Inst Sales (Selling Price) Merch Inv T-In (NRV/FMV/AV)xx Inst A/Rxx Inst Sales net (IS+UA)xx