October 30, 2016 admin

Inventory—Recreation Vehicles—Used

Assets

INVENTORY—RECREATION VEHICLES—USED ASSET ACCOUNT
1451

ACCOUNT EXPLANATION
The lower cost or estimated wholesale market value of used recreation vehicles, including reconditioning charges, on hand for sale. All used recreation trucks or mobilized units regardless of make taken in trade should be recorded in used recreation inventories.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Used recreation vehicle taken in trade on sale of new recreation vehicle NV
    Inventory—Recreation Vehicles—Used 1451
      Recreation Vehicle Net Income 9000
             
  Reconditioning work performed on used recreation vehicle I
    Inventory—Recreation Vehicles—Used 1451
      Sales—Parts—Internal—Service (at internal rate) 5470
      Sales—Labor—Internal—Service (at internal rate) 5730
      Sales—Parts—Internal—Body shop (at internal rate) 5530
      Sales—labor—Internal—Body shop (at internal rate)     5840
           
  Costing on used recreation vehicle sold UV  
    Recreation Vehicle Net Income—Used   9000
      Inventory—Recreation Vehicles—Used     1451
             
  Downward adjustment of used recreation vehicle inventory value to estimated wholesale value G  
    Recreation Vehicle Net Income—Used   9000  
      Inventory—Recreation Vehicles—Used     1451
COMMENTS
  • Subsidiary records should support this account. At month end, used recreation vehicles should be physically inventoried and their total value reconciled with the balance in this account.
  • Account 9000 is a control account. Sales, cost of sales and expenses associated with recreation vehicle transactions should be recorded in the 9001-9049 series of accounts. See Adjustments to Income.