20 Jan The Hark ness Company traded in a car for a new mo
The Hark ness Company traded in a car for a new model. The old car cost $3,500 and was 90 percent depreciated. The list price of the new car was $4,500, but the Keen Car Agency offered to allow $1,200 on the old car. The Hark ness Company had tried to sell the old car, and the best cash price they had been offered was $475. The Keen Car Agency offered to pay $475 cash for the old car if the Hark ness Company did not want to trade it in.a. Make the journal entries to record the trade-in from the point of view of the Hark ness Company.b. Make the journal entries to record the trade-in from the point of view of the Keen Car Agency.
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