1. The entry on Jan. 8 will include a debit to Raw Materials Inventory of?

Raw Materials Inventory 141,120

Accounts Payable 141,120
To record the purchase of raw materials inventory (200,000 * 80% * 90% * 98%)

2. The repossessed inventory on Feb. 14 is most likely to be valued at?

Estimated selling price 24,000

Less: Refinishing costs 6,800
Net realizable value 17,200
Less: Normal Profit 3,200
Value of repossessed inventory on Feb. 14 14,000

3. The journal entries on April 3 will be?

Cash (24,000 * 20%) 4,800

Accounts Receivable (24,000 - 4,800) 19,200
Sales - Repossessed Inventory 24,000
To record the reselling of the repossessed item (20% down, 80% on account)

Cost of Repossessed Goods Sold (14,000 + 6,400) 20,400

Repossessed Inventory 20,400
To record the cost of the repossessed item sold

4. The trade-in inventory on Aug. 30 is most likely to be valued at?

Estimated selling price (net realizable value) 6,400

Less: Normal Profit (6,400 * 25%) 1,600

Value of trade-in inventory 4,800

5. How much will be recorded as Sales on Aug. 30?

Accounts Receivable (59,200 - 8,000) 51,200

Add: Value of trade-in inventory 4,800
Amount to be recorded as sales 56,000