Ford Receivable—Floor Plan Allowance (15 Days) – Ford Online Accounting Manual

Assets

FORD RECEIVABLE—FLOOR PLAN ALLOWANCE (15 DAYS)	ASSET ACCOUNT
	1177

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Amounts due from Ford under the 15 Day Free Floor Plan Program. Under the program, dealerships receive payments to offset the first 15 days of floor plan interest expense on eligible vehicles as defined in the related Ford Programs Manual.

TRANSACTIONS

			Jrnl.	Dr.	Cr.

Floor plan allowance on vehicles purchased during the month			SE
	Ford Receivable—Floor Plan Allowance			1177
		Assistance—Floor Plan—New			7190

Check received from Ford Motor Company in payment of Floor Plan Allowance			CR
	Cash in Bank—General			1001
		Ford Receivable—Floor Plan Assistance			1177

COMMENTS

The Floor Plan Assistance Program starts with the 16th day after the floor plan interest start date and is recorded in Account 1230, Ford Receivable—Floor Plan Assistance. Dealership personnel should be careful not to confuse the two concepts. See Account 1230.
Subsidiary records should support this account.
Dealership personnel should be careful not to reduce the inventory cost of vehicles purchased by the amount of the floor plan allowance.
Amounts outstanding 90 days or more must be reserved in Account 1291, Allowance for Doubtful Receivables.