June 2, 2022 Test

Inventory—New SUV—Other Franchise

Assets

INVENTORY—NEW SUV—OTHER FRANCHISE ASSET ACCOUNT
1325
ACCOUNT EXPLANATION
Cost of  New Other Franchise SUV, SUV bodies and equipment on hand, including labor and material charges for dealer-installed options and accessories. Cost excluded holdback on vehicles purchased from Other Manufacture Companies.
New vehicles purchased from the company should be recorded in inventory at cost, excluding the vehicle holdback.
TRANSACTIONS
Jrnl. Dr. Cr.
New SUV Other Franchise purchased on wholesale floor plan VP
Inventory—New Other Franchise SUV 1325
Ford Receivable—Vehicle Holdback 1160
Ford Receivable—Other Franchise Programs 1200
Notes Payable—New Vehicles & Demonstrators 2000
Check received for new SUV Other Franchise transferred to another dealer at a gain CR
Cash in Bank—General 1001
Inventory—New SUV Other Franchise 1325
Cost of Sales—Dealer Transfers (amount of gain) 4640
(Receiving dealer should charge Account 1315, Inventory—New SUV Other Franchise, with the purchase cost of the vehicle)
Costing of new SUV sold at retail NV
Cost of Sales—New Light SUV—Retail & Fleet 4400, etc.
Inventory—New Other Franchise SUV  1325
Dump body installed on new SUV by outside supplier P
Inventory—New SUV Other Franchise 1325
Accounts Payable—Trade 2100
COMMENTS
  • Subsidiary records should support this account. At month end, SUVs should be physically inventoried and their total cost reconciled with the balance in this account.
  • Holdbacks should be deducted from the factory invoice total and charged to Account 1160, Ford Receivable—Vehicle Holdback.
  • An inventory numbering system that will identify units by SUV series should be adopted. See Office Management for details.
  • If necessary, Accounts 1320-1328 may be used to control the various types of inventory, such as new SUV, SUV bodies and equipment etc., that are grouped in this account.