October 30, 2016 admin

New Trucks—Medium/Heavy—Retail/Fleet Sales

Sales and Cost of Sales

NEW TRUCKS—MEDIUM/HEAVY—RETAIL/FLEET SALES ACCOUNT
SALES  3500-3610
COST OF SALES  4500-4610

ACCOUNT EXPLANATION

Sales: Selling price, less any discount or overallowance, of new medium/heavy trucks sold to retail or fleet customers.

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

*NOTE: Separate numbers have been assigned for retail sales and retail leases. The lease numbers are paired with the retail sales numbers by changing the last digit of the sales number to 1:

F-Super Duty—Retail Sales/Cost of Sales 3500, 4500
F-Super Duty—Retail Leases/COS 3501, 4501

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  New M/H truck sold to retail customer for cash NV
    Cash Sales—Clearing 1010
      Sales—New Trucks—M/H—Retail/Fleet 3500, etc.
    Cost of Sales—New Trucks—M/H—Retail/Fleet 4500, etc.
      Inventory—New Trucks—Ford Motor Company 1310
             
  Sales of M/H truck and assignment of Red Carpet Lease Plan to F.M.C.C. VS
    Accounts Receivable—F.M.C.C. Lease Plan 1135
    Accounts Receivable—F.M.C.C. Deferred Gross 1836
      Retail Lease 3501, etc.
           
  Cost of sales of M/H truck sold to F.M.C.C. VS  
    Cost of Sales—Retail Lease   4501, etc.
      Inventory—New Trucks     1310
COMMENTS
  • Accounts 3590 and 4590, Non FoMoCo Truck—HD—Retail/Fleet Sales, should be used for retail and fleet sales of non-Ford Motor Company medium and heavy trucks.
  • New medium/heavy truck sales to a separate leasing organization, independent or dealer-owned, should be recorded in this account.
  • Dealers who need to maintain records of gross sales and/or discounts and overallowances on medium/heavy truck sales may use one of two methods:
    1. Record gross sales and/or discounts and overallowances as memo items in the Vehicle Sales Journal, without regard to vehicle line, or:
    2. Establish a separate account by changing the last digit of the sales account number for each truck line to 2 (3502,3512,etc.) to which discounts and overallowances should be debited. Gross sales amounts should be credited to the sales accounts (3500, 3515, etc.).
  • Information regarding sales to dealers with an associate sales agreement is contained in instructions issued by Ford Motor Company.