October 30, 2016 admin

New Trucks—Medium/Heavy—Retail Lease

Sales and Cost of Sales

NEW TRUCKS—MEDIUM/HEAVY—RETAIL LEASE ACCOUNT
SALES  3501-3611
COST OF SALES  4501-4611

ACCOUNT EXPLANATION

Sales: Value of lease contracts, less any discounts or overallowances, of new medium/heavy trucks leased to retail customers.

Cost of Sales: Inventory value of units leased. 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.
  Sale of vehicle 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
      New M/H Trucks—Retail Lease 3501- etc.
             
  Cost of sale of vehicle sold to F.M.C.C. VS
    Cost of Sales—Retail Leases 4501- etc.
      Inventory—New Trucks 1310
COMMENTS
  • Lease data should be entered on the subsidiary vehicle inventory record.
  • Medium/heavy trucks placed in leasing or rental service within the dealership operation should be recorded as inventory transfers at dealer cost, not as retail leases. New vehicle sales to a separate leasing organization, independent or dealer-owned, should be recorded in the individual sales Accounts (3500-3580).
  • Information regarding sales to dealers with an associate sales agreement is contained in instructions issued by Ford Motor Company.