Inventory-Remarketed Cars – Ford Online Accounting Manual

Assets

INVENTORY—REMARKETED CARS	ASSET ACCOUNT
	1355

Remarketed cars held for resale valued at the lower of cost or estimated wholesale value. Cost includes reconditioning charges, if any.

				Jrnl.	Dr.	Cr.

Purchase of a remarketed vehicle on wholesale floor plan				VP
	Inventory—Remarketed Car				1355
			Notes Payable—Remarketed Vehicles			2015

Costing remarketed car sold at retail				UV
	Cost of sales remarketed cars retail				4800
	Cost of sales Used Cars Reconditioning Retail				4701
			Inventory—Remarketed Cars			1355

Accessories installed in a remarketed car				I
	Inventory Remarketed Car				1355
			Inventory Parts, Ford			1400
			Inventory Parts, Other			1410
			Service Labor Sales Internal			5730
			Body Shop Labor Sales Internal			5840

Cost of sale of vehicle sold to F.M.C.C				UV
	Cost of Sales				4800
		Inventory—Remarketed Car				1355

Remarketed cars are used Ford Motor Company cars sold to Ford and Lincoln Mercury dealers at closed auction. (i.e. Fleet repurchase vehicles, Ford Company Sales Vehicles, etc.)
The description and cost of remarketed cars purchased should be entered on a subsidiary vehicle inventory record. At month end, cars should be physically inventoried and their total cost reconciled with the balance in this account.
A stock numbering system that will identify units by car line should be adopted. See Office Management for details.
Parts and labor used in the installation of options and accessories on remarketed vehicles by the dealership should be charged to this account at internal rates.
Auction fees incurred on purchase of used cars should be charged to this account.
If at month end, the amount at which a unit is carried in inventory exceeds its current estimated wholesale value, the excess should be credited to this account and charged to Account 4702, Used Cars Inventory Adjustements.