Trade-in allowance

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Trade-in allowance is a value received when one asset is traded in on the purchase of another asset. For example, when you buy a new car you may trade in your old car for an amount of money that is applied toward the purchase of the new car.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Trade-in allowance. A value received when one asset is traded in on the purchase of another asset. For example, when you buy a new car you may trade in your old car for an amount of money that is applied toward the purchase of the new car.

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