October 30, 2016 admin

Ford, Asia Pacific Receivable—Vehicle Holdback

Assets

FORD, ASIA PACIFIC RECEIVABLE—VEHICLE HOLDBACK ASSET ACCOUNT
1160

ACCOUNT EXPLANATION
Amount due from Ford Motor Company for holdbacks on new vehicles.
TRANSACTIONS
  Jrnl. Dr. Cr.
  New car purchased on wholesale floor plan VP
    Ford, Asia Pacific Receivable—Vehicle Holdback 1160
    Inventory—New Vehicles 1300-1310
      Notes Payable—New Vehicles & Demonstrators 2000
             
  Check received from Ford Motor Company in payment of holdback CR
    Cash in Bank—General 1001
      Ford, Asia Pacific Receivable—Vehicle Holdback 1160
COMMENTS
  • The provisions of the vehicle holdback program are described in instructions issued by Ford Motor Company.
  • Individual vehicle holdbacks should be checked against monthly statements received from Ford Motor Company. The statement total should then be reconciled to the balance in this account.