October 30, 2016 admin

Pre-Delivery—New

Expenses

PRE-DELIVERY—NEW EXPENSE ACCOUNT
7030

ACCOUNT EXPLANATION
Expense of preparing new vehicles for delivery at internal rates. Includes washing, lubrication, inspection and adjustment of new vehicles.
TRANSACTIONS
  Jrnl. Dr. Cr.
Preparation of new car for delivery
 • Record internal sale:		 I
    Pre-Delivery—New 7030
      Sales—Parts—Internal—Service (at internal rate) 5470
      Sales—Labor—Internal (at internal rate) 5730
             
   • Record cost of internal sale:
    Cost of Sales—Parts—Internal—Service 6470
    Cost of Sales—Labor—Internal—Service 6730
      Inventory—Parts—Ford 1400
      Inventory—Labor in Process     1440
           
  Travel expenses incurred in delivery of new truck to customer’s place of business CD  
    Pre-Delivery—New   7030
      Cash in Bank—General     1001
COMMENTS
  • Repair of minor transit damage for which a claim is not made against the carrier should be charged to this account.
  • Labor and material used in installation of options and accessories on new vehicles should be charged to the appropriate new vehicle inventory account at the internal rates.
  • If the new car and new truck activities are organized as separate departments, charges to this account should be distributed directly to the departments generating the expense. See Departmentalization for further information.