October 30, 2016 admin

New Cars—Retail Sales

Sales and Cost of Sales

NEW CARS—RETAIL SALES—ASIA PACIFIC ONLY ACCOUNT
SALES  3042-3324
COST OF SALES  4042-4324

ACCOUNT EXPLANATION
Sales: Selling price, less any discount or overallowance, of new cars sold at retail.

Cost of Sales: Inventory value of units sold. Note that inventory value is cost less vehicle holdback.

Extended Service Plan Contract.

*NOTE: a separate series of numbers has been assigned for retail leases. These lease numbers are paired with the retail sales numbers by changing the last digit of the sales number to 1:

Fiesta—Retail Sales/Cost of Sales 3042, 4042
Fiesta—Retail Lease/COS 3043, 4043

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  New car sold at retail to customer for cash NV
    Cash Sales—Clearing 1010
      Sales—New Cars—Retail 3042, etc.
             
  New car costed out at time of sale NV
    Cost of Sales—New Cars—Retail 4042-
etc.
      Inventory—New Cars 1300
      Inventory—New Car—Other Franchise     1305
             
  Sale of a new vehicle with an Extended Service Plan contract NV
    Cash Sales—Clearing 1010
      Sales and Use Taxes 2150
      Customer Service Contracts     2315
    Sales—New Vehicles   3042-
etc.
      Service Contract Income—New     5040
COMMENTS
  • Ford Motor Company instructions set forth the account numbers for each car line within the above series of accounts. Accounting bulletins from the Company should be retained for reference in Section N of the paper manual.
  • Sales data should be entered on the subsidiary vehicle inventory record.
  • Gains or losses on new vehicles transferred to other dealerships should be recorded as decreases or increases in the Dealer Transfer Account 4640.
  • Dealerships that need to maintain records of gross dales and/or discounts and overallowances on vehicle sales may use one of two methods:
    1. Record gross sales and/or discounts and overallowances as memo items in the New Vehicle Sales Journal, without regard to vehicle line, or
    2. Establish a separate account, to which discounts and overallowances should be debited. Gross sales amounts should be credited to the vehicle sales accounts (3042,3043, etc.).