Interest—Floor Plan—New – Ford Online Accounting Manual

Expenses

INTEREST—FLOOR PLAN—NEW	EXPENSE ACCOUNT
	7180

Interest expense paid or accrued on loans obtained to finance new vehicles, excluding vehicles in demonstrator service.

Includes flat rate charges and inventory insurance costs that are included in new vehicle floor plan charges.

			Jrnl.	Dr.	Cr.

Monthly accrual of floor plan interest on new vehicles			SE
	Interest—Floor Plan—New			7180
		Accrued Interest			2421

Costs of financing and insurance applicable to vehicles in demonstrator service should be charged to Account 7150, Demonstrator Expense—New; Account 7350, Demonstrator Expense—Used; Account 7680, Equipment & Vehicle Maintenance—Parts; Account 7780, Equipment & Vehicle Maintenance—Service; or Account 8780, Equipment & Vehicle Maintenance—General, as appropriate.
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.