October 30, 2016 admin

Used Cars—Wholesale

Sales and Cost of Sales

USED CARS—WHOLESALE ACCOUNT
SALES  3710
COST OF SALES  4710

ACCOUNT EXPLANATION

Sales: Selling price of used cars sold to wholesale customers or junked.

Cost of Sales: Inventory value, excluding reconditioning costs, of units sold or junked.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  Used car sold to wholesale customer for cash UV
    Cash Sales—Clearing 1010
      Sales—Used Cars—Wholesale 3710
             
  Used car costed out at time of sale UV
    Cost of Sales—Used Cars—Wholesale 4710
    Cost of Sales—Used Cars—Reconditioning—Wholesale 4711
      Inventory—Used Cars 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 wholesaled, the inventory value, excluding reconditioning costs, of the units should be charged to Account 4710, Cost of Sales—Used Cars—Wholesale. Accumulated reconditioning costs should be charged to Account 4711, Cost of Sales—Used Cars—Reconditioning—Wholesale.