Assets
INVENTORY—USED CERTIFIED CARS (FRANCHISE ONLY) |
ASSET ACCOUNT |
1380 |
|
|
ACCOUNT EXPLANATION
|
Used Certified cars held for resale valued at the lower of cost or estimated wholesale value. Cost includes reconditioning charges. |
TRANSACTIONS
|
|
|
|
Jrnl. |
Dr. |
Cr. |
|
|
|
Used Certified car taken in trade on new car sale |
|
NV |
|
|
|
|
Inventory—Used Certified Cars (Franchise only) (at estimated wholesale value) |
|
|
1380 |
|
|
|
Finance Contracts—New |
|
|
1020 |
|
|
|
|
Sales—New Cars |
|
|
|
3000,etc. |
|
|
|
|
|
|
|
|
Reconditioning work performed on used Certified car |
|
I |
|
|
|
|
Inventory—Used Certified Cars (Franchise only) |
|
|
1380 |
|
|
|
|
Sales—Parts to Service—Internal (at internal rate) |
|
|
|
5470 |
|
|
|
Sales—Parts to Body Shop—Internal (at internal rate) |
|
|
|
5530 |
|
|
|
Sales—Service Labor—Internal (at internal rate) |
|
|
|
5730 |
|
|
|
Sales—Body Shop Labor—Internal (at internal rate) |
|
|
|
5840 |
|
|
|
|
|
|
|
|
Costing used Certified car sold at retail |
|
UV |
|
|
|
|
Cost of Sales—Used Certified Cars (Franchise only)—Retail |
|
|
4830 |
|
|
|
Cost of Sales—Used Certified Cars (Franchise only)—Reconditioning |
|
|
4831 |
|
|
|
|
Inventory—Used Cars |
|
|
|
1380 |
|
|
|
|
|
|
|
|
Repossessed car (originally sold as a new car) purchased from finance institution |
|
CD |
|
|
|
|
Inventory—Used Certified Cars (Franchise only) (at estimated wholesale value) |
|
|
1380 |
|
|
|
Estimated Liability for Repossession Purchase Loss |
|
|
2600 |
|
|
|
or |
|
|
or |
|
|
|
Repossession Purchase Loss—New (excess of purchase) |
|
|
6070 |
|
|
|
|
Cash in Bank—General |
|
|
|
1001 |
|
Purchase of vehicle and return of security deposit |
|
CD |
|
|
|
|
Inventory—Used Certified Cars (Franchise only) |
|
|
1380 |
|
|
|
Accounts Receivable—F.M.C.C.—Deferred Gross |
|
|
|
1836 |
|
|
Customer Deposits |
|
|
|
2300 |
|
|
|
Cash in Bank—General |
|
|
|
1001 |
|
Write down value of vehicle purchased from F.M.C.C. |
|
GJ |
|
|
|
|
Leased Vehicle Gain or Loss |
|
|
5300 |
|
|
|
Inventory—Used CPO Cars(Franchise only) |
|
|
|
1380 |
|
COMMENTS
|
- Used Certified cars should be placed in inventory at estimated wholesale value, less estimated reconditioning required to make the vehicle saleable at the estimated wholesale value. When repossessed units are placed in inventory, the excess of purchase price over estimated wholesale value should be charged to Account 2600, Estimated Liability for Repossession Purchase Loss. If account 2600 is not used, the excess should be charged to Account 6070, Repossession Purchase Loss—New, or Account 6170, Repossession Purchase Loss—Used, depending on whether the sale that led to the repossession was a new vehicle sale or a used vehicle sale. Further information regarding the handling of repossession purchase losses is contained in Account 2600.
- 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 Adjustments.
- Subsidiary records should supoort this account. At month end, used CPO cars should be physically inventoried and thier total value reconciled with the balance in this account. An aging schedule of used vehicles on hand should be prepared for management review.
- Auction fees incurred on purchase of used cars should be charged to this account.
- An inventory numbering system, providing cross-referencing to the new vehicle source where applicable, should be used. See Office Management for details.
- Units sold as junkers should be recorded as wholesale sales.
- Account No. 1836, Accounts Receivable F.M.C.C.—Deferred Gross, should be combined with Account No.1830, Other Assets, for financial statement purposes.
|
Assets
INVENTORY—USED CPO CARS (FRANCHISE ONLY) |
ASSET ACCOUNT |
1380 |
|
|
ACCOUNT EXPLANATION
|
Used CPO cars held for resale valued at the lower of cost or estimated wholesale value. Cost includes reconditioning charges. |
TRANSACTIONS
|
|
|
|
Jrnl. |
Dr. |
Cr. |
|
|
|
Used CPO car taken in trade on new car sale |
|
NV |
|
|
|
|
Inventory—Used CPO Cars (Franchise only) (at estimated wholesale value) |
|
|
1380 |
|
|
|
Finance Contracts—New |
|
|
1020 |
|
|
|
|
Sales—New Cars |
|
|
|
3000,etc. |
|
|
|
|
|
|
|
|
Reconditioning work performed on used cpo car |
|
I |
|
|
|
|
Inventory—Used CPO Cars (Franchise only) |
|
|
1380 |
|
|
|
|
Sales—Parts to Service—Internal (at internal rate) |
|
|
|
5470 |
|
|
|
Sales—Parts to Body Shop—Internal (at internal rate) |
|
|
|
5530 |
|
|
|
Sales—Service Labor—Internal (at internal rate) |
|
|
|
5730 |
|
|
|
Sales—Body Shop Labor—Internal (at internal rate) |
|
|
|
5840 |
|
|
|
|
|
|
|
|
Costing used cpo car sold at retail |
|
UV |
|
|
|
|
Cost of Sales—Used CPO Cars (Franchise only)—Retail |
|
|
4830 |
|
|
|
Cost of Sales—Used CPO Cars (Franchise only)—Reconditioning |
|
|
4831 |
|
|
|
|
Inventory—Used Cars |
|
|
|
1380 |
|
|
|
|
|
|
|
|
Repossessed car (originally sold as a new car) purchased from finance institution |
|
CD |
|
|
|
|
Inventory—Used CPO Cars (Franchise only) (at estimated wholesale value) |
|
|
1380 |
|
|
|
Estimated Liability for Repossession Purchase Loss |
|
|
2600 |
|
|
|
or |
|
|
or |
|
|
|
Repossession Purchase Loss—New (excess of purchase) |
|
|
6070 |
|
|
|
|
Cash in Bank—General |
|
|
|
1001 |
|
Purchase of vechicle and return of security deposit |
|
CD |
|
|
|
|
Inventory—Used CPO Cars (Franchise only) |
|
|
1380 |
|
|
|
Accounts Receivable—F.M.C.C.—Deferred Gross |
|
|
|
1836 |
|
|
Customer Deposits |
|
|
|
2300 |
|
|
|
Cash in Bank—General |
|
|
|
1001 |
|
Write down value of vehicle purchased from F.M.C.C. |
|
GJ |
|
|
|
|
Leased Vechicle Gain or Loss |
|
|
5300 |
|
|
|
Inventory—Used CPO Cars(Franchise only) |
|
|
|
1380 |
|
COMMENTS
|
- Used CPO cars should be placed in inventory at estimated wholesale value, less estimated reconditioning required to make the vehicle saleable at the estimated wholesale value. When repossessed units are placed in inventory, the excess of purchase price over estimated wholesale value should be charged to Account 2600, Estimated Liablility for Repossession Purchase Loss. If account 2600 is not used, the excess should be charged to Account 6070, Repossession Purchase Loss—New, or Account 6170, Repossession Purchase Loss—Used, depending on whether the sale that led to the repossession was a new vehicle sale or a used vehilce sale. Further information regarding the handling of repossession purchase losses is contained in Account 2600.
- 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 Adjustments.
- Subsidiary records should supoort this account. At month end, used CPO cars should be physically inventoried and thier total value reconciled with the balance in this account. An aging schedule of used vehicles on hand should be prepared for management review.
- Auction fees incurred on purchase of used cars should be charged to this account.
- An inventory numbering system, providing cross-referencing to the new vehicle source where applicable, should be used. See Office Management for details.
- Units sold as junkers should be recorded as wholesale sales.
- Account No. 1836, Accounts Receivable F.M.C.C.—Deferred Gross, should be combined with Account No.1830, Other Assets, for financial statement purposes.
|