Inventory—Tractors & Implements—Used – Ford Online Accounting Manual

Assets

INVENTORY—TRACTORS & IMPLEMENTS—USED	ASSET ACCOUNT
	1446

The lower of cost or estimated wholesale market value of used tractors and implements, including reconditioning charges, on hand for sale.

			Jrnl.	Dr.	Cr.

Used tractor taken in trade on sale of new tractor			NV
	Inventory—Tractors & Implements—Used			1446
		Tractors & Implements Net Income			9050

Reconditioning work performed on used tractor			I
	Inventory—Tractors & Implements—Used			1446
		Sales—Parts—Internal—Service Dept (at internal rate)			5470
		Sales—Labor—Internal—Service Dept (at internal rate)			5730
		Sales—Parts—Internal—Body Shop			5530
		Sales—Labor—Internal—Body shop			5840

Costing used tractors sold			UV
	Tractors & Implements Net Income			9050
		Inventory—Tractors & Implements—Used			1446

Adjustment of used tractor to estimated wholesale value			G
	Tractors & Implements Net Income			9050
		Inventory—Tractors & Implements—Used			1446

The description and cost of used tractors and implements should be entered on a subsidiary inventory record when acquired. At month end, a physical inventory should be taken and reconciled with the balance in this account.
Account 9050 is a control account. Sales, cost of sales and expenses associated with tractor and implement transactions should be recorded in the 9050 series of accounts. See Adjustments to Income.