October 30, 2016 admin

Inventory—Recreation Vehicles—New

Assets

INVENTORY—RECREATION VEHICLES—NEW ASSET ACCOUNT
1450

ACCOUNT EXPLANATION
Cost of new recreation vehicles on hand for sale, including labor and material charges for dealer-installed options and accessories. Recreation vehicles includes all slide-in campers, tent trailers and travel trailers. (i.e. motor homes, chassis mounts and conversions) which were manufactured on other than a Ford chassis. Also include boats, outboard motors, motorcycles, snowmobiles, and other types of sports equipment and accessories sold separately from the Ford truck. The above items when sold should be recorded in Recreation Vehicle Other Net Income, Account 9000. Any recreation units permanently mounted on a Ford truck chassis are to be included in Inventory—New Trucks, Account 1310.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Purchase of new camper on wholesale floor plan VP
    Inventory—Recreation Vehicles—New 1450
      Notes Payable—Recreation Vehicles 2020
             
  Check received for new motor home transferred to another dealer at gain CR
    Cash in Bank—General 1001
      Inventory—Recreation Vehicles—New 1450
      Recreation Vehicle Net Income (amount of gain) 9000
             
  Costing of new recreation vehicle sold NV
    Recreation Vehicle Net Income 9000
      Inventory—Recreation Vehicles—New 1450
COMMENTS
  • The description and cost of new recreation vehicles should be entered on a subsidiary inventory record when purchased. At month end, a physical inventory should be taken and reconciled with the balance in this account.
  • Account 9000 is a control account. Sales, cost of sales and expenses associated with recreation vehicle transactions (new and used) should be recorded in the 9002-9049 series of accounts. See Adjustments to Income.
  • If necessary, Accounts 1452-1459 may be used to control the various types of inventory such as campers, camper bodies, snowmobiles, motorcycles, etc.
  • Truck chassis other than Ford make, including the recreation component, should be classified as Inventory—Recreation—New, Account 1450; and when sold, recorded in Recreation Vehicle Other Net Income, Account 9000. All new Ford Recreation Trucks are to be included in Inventory—New Trucks, Account 1310.