USA JE for Asset sold to employee (making payments) who then defaulted on the loan.


Joined
Apr 14, 2021
Messages
2
Reaction score
0
Country
United States
I have a situation where a company truck (fully depreciated) was sold to an employee, who basically just took over the truck payments, then also charged him for taking over an established route at a trucking company.
The employee ended up quitting and defaulting on the loan. What do I do with the payments I did receive?
 
Ad

Advertisements

kirby

VIP Member
Joined
May 12, 2011
Messages
2,230
Reaction score
302
Country
United States
what entry did you make at sale? Then we can go from there.
 
Ad

Advertisements

BIG E

VIP Member
Joined
Dec 19, 2020
Messages
102
Reaction score
14
Country
United States
You are dealing with multiple related, but not directly connected transactions.
As the first poster noted - how did the business record the sale of the asset?
Then - how can they transfer title if a lender has a lien on it for the debt without the
lender being notified of the sale? And how about the insurance carrier?
Selling the route is a separate transaction that's a business sale, most likely an
installment sale of goodwill and other intangible assets. Was there legal agreement
signed by both parties?
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top