Ford Warranty Credit Advance – Ford Online Accounting Manual

Assets

FORD WARRANTY CREDIT ADVANCE	ASSET ACCOUNT
	1142

Allowance provided to dealers by Ford to offset monies owed for warranty and ESP repair claims.

			Jrnl.	Dr.	Cr.

Established Warranty Credit Advance per Parts Statement			P
	Account Payable—Trade			2100
		Warranty Credit Advance			1142

The Ford payable balance in Account 2100—Accounts Payable—Trade plus deferred balance in the Warranty & Policy Credit Advance Account—1142, should equal the combined total of the “new balance due” and “new deferred balance” amounts reflected on the applicable month end Ford Parts Statement.
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.