October 30, 2016 admin

Used Cars (Non Certified)—Retail

Sales and Cost of Sales

USED CARS (NON CERTIFIED)—RETAIL ACCOUNT
SALES  3700/3730
COST OF SALES  4700/4730
ACCOUNT EXPLANATION
Sales: selling price, less overallowance, of used cars (Non Certified) sold to retail customers (excludes Remarketed Vehicles, refer to Account 3805).

Cost of Sales: Inventory value, excluding reconditioning costs, of used cars (Non Certified) sold to retail customers.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
Jrnl. Dr. Cr.
Used car (Non Certified) sold to retail customer for cash plus trade-in UV
Cash Sales—Clearing 1010
Inventory—Used Cars (Non Certified) (wholesale value of trade-in less estimated reconditioning cost) 1350
Sales—Used Cars —Retail (Non Certified) – Franchise/Other 3700, 3730
Used car (Non Certified) costed out at time of sale UV
Cost of Sales—Used Cars (Non Certified)—Retail – Franchise/Other 4700, 4730
Cost of Sales—Used Cars (Non Certified)—Reconditioning—Retail 4701
Inventory—Used Cars (Non Certified) 1350
COMMENTS
  • The cost of each vehicle and reconditioning costs should be obtained from the subsidiary vehicle inventory record. Sales data should be entered on the vehicle inventory record.
  • When used cars are retailed, the inventory value, excluding reconditioning costs, of the units should be charged to Account 4700, Cost of Sales—Used Cars—Retail (Non Certified) for Franchise used cars and Account 4730, Cost of Sales—Used Cars—Retail for Non Franchise used cars.
  • Dealers who need to maintain records of gross sales and/or overallowances on used vehicle sales may use one of two methods:
    1. Record gross sales and/or overallowances as memo items in the Vehicle Sales Journal, without regard to vehicle line, or:
    2. Establish a separate account, using Account 3701(Franchise-Non Certified)/3731(Non Franchise), Used Cars—Retail (Non Certified)—Overallowances, to which overallowances should be debited. Gross sales amounts should be credited to Account 3700/3730.