Assets
| INVENTORY—NEW SUV |
ASSET ACCOUNT |
| 1320 |
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ACCOUNT EXPLANATION
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| Cost of new 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 Ford Motor Company. New vehicles purchased from the company should be recorded in inventory at cost, excluding the vehicle holdback. |
TRANSACTIONS
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Jrnl. |
Dr. |
Cr. |
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New SUV purchased on wholesale floor plan |
|
VP |
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Inventory—New SUV |
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1320 |
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Ford Receivable—Vehicle Holdback |
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|
1160 |
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Ford Receivable—Other Ford Programs |
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1200 |
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Notes Payable—New Vehicles & Demonstrators |
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2000 |
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Check received for new SUV transferred to another dealer at a gain |
|
CR |
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Cash in Bank—General |
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1001 |
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Inventory—New SUV |
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1320 |
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Cost of Sales—Dealer Transfers (amount of gain) |
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4640 |
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(Receiving dealer should charge Account 1320, Inventory—New SUV, with the purchase cost of the vehicle) |
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Costing of new SUV sold at retail |
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NV |
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Cost of Sales—New SUV—Retail & Fleet |
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4400, etc. |
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Inventory—New SUV |
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1320 |
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Dump body installed on new SUV by outside supplier |
|
P |
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Inventory—New SUV |
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1320 |
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Accounts Payable—Trade |
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2100 |
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COMMENTS
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- Subsidiary record 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 1311-1319 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.
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