Equipment—Parts, Service & Body Shop—Cost – Ford Online Accounting Manual

Assets

EQUIPMENT—PARTS, SERVICE & BODY SHOP—COST		ASSET ACCOUNT
		1720

Cost of parts and service equipment acquired new or used. Includes freight and installation costs.

			Jrnl.	Dr.	Cr.

Brake drum lathe purchased on open account			P
	Parts & Service Equipment			1720
		Accounts Payable—Trade			2100

Purchase of Rotunda service equipment on twelve-month deferred monthly payment plan			G
	Prepaid Interest			1520
	Parts & Service Equipment			1720
		Notes Payable—Other—Short Term			2030

Purchase of Rotunda service equipment under five-year conditional sales plan			G
	Parts & Service Equipment			1720
		Notes Payable—Long Term—Current Portion			2040
		Notes Payable—Other—Long Term			2520

Sale of parts bins for cash at a loss			CR
	Cash in Bank—General			1001
	Accumulated Depreciation—Parts & Service Equipment			1725
	Gain or Loss—Sale of fixed Assets & Securities			9250
		Parts & Service Equipment			1720

Small tools with a value less than $25, or other minor value established by the dealership, or having an estimated life of less than one year, should be charged to Account 7670, Tools & Supplies—Parts; Account 7770, Tools & Supplies—Service; or Account 7870, Tools & Supplies—Body Shop.
Detailed fixed assets records should support this account.
Physical inventories of parts and service equipment should be taken periodically and the balance in the account adjusted to the cost of items physically on hand.
Expenditures related to repair and maintenance of parts or service equipment should be charged to Account 7680, Equipment & Vehicle Maintenance—Parts; Account 7780, Equipment & Maintenance—Service; or Account 7880, Equipment & Vehicle Maintenance—Body Shop; as appropriate.