Ford Receivable—Floor Plan Assistance – Ford Online Accounting Manual

Assets

FORD RECEIVABLE—FLOOR PLAN ASSISTANCE	ASSET ACCOUNT
	1230

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Amounts due from Ford under the Floor Plan Assistance Program. Under the program, dealerships receive payments to offset floor plan interest expense beyond the 15-day Floor Plan Program.

TRANSACTIONS

			Jrnl.	Dr.	Cr.

Floor Plan assistance on vehicles purchased during the month			SE
	Ford Receivable—Floor Plan Assistance			1230
		Assistance—Floor Plan—New			7190

Check received from Ford Motor Company in payment of Floor Plan Assistance			CR
	Cash in Bank—General			1001
		Ford Receivable—Floor Plan Assistance			1230

COMMENTS

The 15-day Free Floor Plan Program covers the first 15 days after the floor plan interest start date and is recorded on Account 1177, Ford Receivable—Floor Plan Allowance. Dealership personnel should be careful not to confuse the two concepts. See Account 1177.
Subsidiary records should support this account.
Dealership personnel should be careful not to reduce the inventory cost of vehicles purchased by the count of the Floor Plan Assistance.
Amounts outstanding 90 days or more must be reserved in Account 1291, Allowance for Doubtful Receivables.