October 30, 2016 admin

Tools & Supplies—Parts

Expenses

TOOLS & SUPPLIES—PARTS EXPENSE ACCOUNT
7670

ACCOUNT EXPLANATION
Costs of small tools and supplies, other than office supplies, acquired for the benefit of the parts department.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Purchase of bin labels on open account P
    Tools & Supplies—Parts 7670
      Accounts Payable—Trade 2100
             
  Purchase of small portable hand truck CD
    Tools & Supplies—Parts 7670
      Cash in Bank—General 1001
             
  Bill for laundering uniforms of parts department employees P
    Tools & Supplies—Parts 7670
      Accounts Payable—Trade 2100
COMMENTS
  • Small tools with a value of less than $25, or other minor value established by the dealership, or having an estimated useful life of less than one year, should be charged to this account.
  • If amounts involved are significant, supplies purchased in quantities for use over a prolonged period should be recorded in Account 1560, Prepaid Miscellaneous, and charged to expense monthly on a pro rata basis.
  • Charges to this account should have the approval of appropriate management.