Sales and Cost of Sales
| USED SUV/TRUCKS (NON CERTIFIED)—FRANCHISE & NON FRANCHISE—RETAIL |
ACCOUNT |
| SALES |
3750/3767 |
| COST OF SALES |
4750/4767 |
|
|
ACCOUNT EXPLANATION
|
| Sales: Selling price, less overallowance, of used SUV/Trucks (Non Certified) sold to retail customers.
Cost of Sales: Inventory value, excluding reconditioning costs, of units sold.
*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers |
TRANSACTIONS
|
|
|
|
Jrnl. |
Dr. |
Cr. |
|
|
|
Sale of used SUV/Truck (Non Certified) to a retail customer for cash plus finance contract for balance |
|
UV |
|
|
|
|
Cash Sales—Clearing |
|
|
1010 |
|
|
|
Finance Contracts |
|
|
1030 |
|
|
|
|
Sales—Used SUV/Trucks—Retail (Non Certified) |
|
|
|
3750 |
|
|
|
Sales—Used SUV/Trucks—Non-Franchise—Retail |
|
|
|
3767 |
|
|
|
|
|
|
|
|
|
Costing of sale of used SUV/Truck to a retail customer |
|
UV |
|
|
|
|
Cost of Sales—Used SUV/Trucks—Retail (Non Certified) |
|
|
4750 |
|
|
|
Cost of Sales—Used SUV/Trucks—Reconditioning—Retail (Non Certified) |
|
|
4751 |
|
|
|
Cost of Sales—Used SUV/Trucks—Non-Franchise |
|
|
4767 |
|
|
|
Cost of Sales—Used SUV/Trucks—Non-Franchise—Reconditioning—Retail |
|
|
4768 |
|
|
|
|
Inventory—Used SUV/Truck (Non Certified) |
|
|
|
1360 |
|
|
|
Inventory—Used SUV/Truck—Other Franchise—Retail |
|
|
|
1370 |
|
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 SUV/Trucks are retailed, the inventory value, excluding reconditioning costs, of the units should be charged to Account 4750, Cost of Sales—Used SUV/Trucks—Retail (Non Certified). Accumulated reconditioning costs should be charged to Account 4751, Cost of Sales—Used SUV/Trucks—Reconditioning—Retail (Non Certified) or Cost of Sales—Used SUV/Trucks—Non-Franchise—Reconditioning—Retail in Account 4761.
- Dealers who need to maintain records of gross sales and/or overallowances on used SUV/Truck sales may use one of two methods:
| 1. |
Record gross sales and/or overallowances as memo items in the Vehicle Sales Journal, or: |
| 2. |
Establish a separate account, using Account 3751, Sales—Used SUV/Trucks—Retail (Non Certified)—Overallowances, to which overallowances should be debited. Gross sales amounts should be credited to Account 3750. |
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