October 30, 2016 admin

Ford Receivable—Preparation & Conditioning

Assets

FORD RECEIVABLE—PREPARATION & CONDITIONING	ASSET ACCOUNT
	1195

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Amounts due from Ford Motor Company for preparation and conditioning of new vehicles.

TRANSACTIONS

					Jrnl.	Dr.	Cr.

	Purchase new vehicles from Ford Motor Company				VP
		Ford Receivable—Preparation & Conditioning				1195
			Pre-Delivery Refunds—New				7040

	Record the Preparation & Conditioning reimbursement from Ford Motor Company				CR
		Cash in Bank—General				1001
			Ford Receivable—Preparation & Conditioning				1195

COMMENTS

New Vehicles purchased from the company should be recorded at cost less the 3% vehicle holdback.
For financial statement reporting purposes, Account 1195 should be combined with Account 1200, Ford Receivable—Others.