October 30, 2016 admin

Customer Deposits

Liabilities and Net Worth

CUSTOMER DEPOSITS LIABILITY ACCOUNT
2300

ACCOUNT EXPLANATION
Amounts collected form customers to apply on future deliveries of vehicles and other merchandise.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Deposit received form customer on future new car delivery CR
    Cash in Bank—Trust 1003
      Customer Deposits 2300
             
  Delivery of new vehicle sold for cash NV
    Cash in Bank—General 1001
    Customer Deposits 2300
      Sales—New Cars—Retail 3000-
etc.
             
  Purchase of vehicle and return of security deposit and deferred gross from F.M.C.C. at end of lease term CD
    Inventory—Used Cars—Trucks 1350-
1360
      Accounts Receivable—F.M.C.C.—Deferred Gross 1836
      Customer Deposits     2300
      Cash in Bank—General     1001
COMMENTS
  • A subsidiary record should be maintained, showing for each deposit: customer’s name, address, amount, date, and ultimate disposition. A schedule of deposits not applied or refunded, comprising the balance in this account, should be reconciled at month end with the balance in Account 1003, Cash in Bank—Trust.
  • See Account 1003, Cash in Bank—Trust, for details regarding handling of cash deposits.