October 30, 2016 admin

Ford Receivable—Warranty & Policy Claims

Assets

FORD RECEIVABLE—WARRANTY & POLICY CLAIMS ASSET ACCOUNT
1140

ACCOUNT EXPLANATION
Claims filed with Ford Motor Company in accordance with the warranty and policy program; including visiting owner claims, and warranty service on designated campaigns and special programs, less the Warranty Credit Advance.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Vehicle repair within warranty period W
    Ford Receivable—Warranty & Policy Claims 1140
      Sales—Parts, Sales & Service—Warranty & Policy Claims 5460
      Sales—Service, Labor—Warranty & Policy Claims 5720
      Sales—Parts Sales to Body Shop—Warranty & Policy Claims 5520
      Sales—Body Shop Labor—Warranty & Policy Claims 5830
           
  Credit received on Ford Motor Company parts account for claims allowed P  
    Accounts Payable—Trade   2100
      Ford Receivable—Warranty & Policy Claims     1140
           
  Warranty claim partially allowed on Ford Motor Company parts account  
    – Portion allowed P
      Accounts Payable—Trade   2100
        Ford Receivable—Warranty & Policy Claims     1140
    – Portion disallowed SE    
      Free Service—New   7050  
        Ford Receivable—Warranty & Policy Claims     1140
             
  Establish Warranty Credit Advance per Parts Statement P    
    Accounts Payable—Trade   2100  
      Ford Receivable—Warranty & Policy Claims     1140
      Ford Receivable—Warranty & Policy Credit Advance     1142
COMMENTS
  • For explanation of warranty and policy adjustments, forms, procedures, and reimbursement rates, consult the Warranty & Policy Manual issued by Ford Motor Company.
  • Variances between amounts claimed and amounts reimbursed should be charged to Account 7050, Free Service—New, unless the variance is specifically attributable to the parts department, the service department or body shop, in which case the variance should be charged to one of the following: Account 7650, Policy Adjustments—Parts; or Account 7850, Policy Adjustments—Body Shop; as appropriate.
  • Form FMC 19, Warranty & Policy Register Journal, should reflect outstanding claims in an amount equal to the balance in this account plus Account 1142, Warranty Credit Advance.
  • Unpaid claims should be reviewed regularly, with particular attention to those over 60 days old. Unless action is to be taken to resubmit denied claims, they should be written off.
  • The amount of the Warranty Credit Advance, for financial statement purposes, should be shown as a memo item on line 10 in the space provided adjacent to the Ford Receivable—W & P Claims, Account 1140.