Sales and Cost of Sales
| USED SUV/TRUCKS (NON CERTIFIED)—RETAIL LEASE |
|
ACCOUNT |
| SALES |
3765 3770 |
| COST OF SALES |
4765 4770 |
|
|
ACCOUNT EXPLANATION
|
| Sales: Value of lease contracts, less any discounts or overallowances, of used SUV/Trucks (Non Certified) leased to retail customers, usually under Red Carpet Lease Programs.
Cost of Sales: Inventory value of units leased, excluding reconditioning costs of used SUV/Trucks (Non Certified) sold to lease customers.
NOTE: Separate numbers have been assigned for FoMoCo and non FoMoCo retail leases:
| FoMoCo Used—Retail lease sales (Non Certified)/cost of sales |
3765/4765 |
| Non FoMoCo Used—Retail lease sales/cost of sales |
3770/4770 |
*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. |
|
UV |
|
|
|
|
Accounts Receivable—F.M.C.C. Lease Plan |
|
|
1135 |
|
|
|
Accounts Receivable—F.M.C.C. Deferred Gross |
|
|
1836 |
|
|
|
|
Sales—Used SUV/Trucks—Retail Lease (Non Certified) |
|
|
|
3765, 3770 |
|
|
|
|
|
|
|
|
|
Costing of sale of vehicle sold to F.M.C.C. |
|
UV |
|
|
|
|
Cost of Sales—Retail Leases—Used SUV/Trucks Retail Lease (Non Certified) |
|
|
4765, 4770 |
|
|
|
Cost of Sales—Reconditioning—Used SUV/Trucks Retail Lease (Non Certified) |
|
|
4766 |
|
|
|
|
Inventory—Used SUV/Trucks (Non Certified) |
|
|
|
1360 |
|
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 leased, the inventory value of the units should be charged to Account 4765 Ford Motor Company Used SUV/Trucks (Non Certified) (4770 Non FoMoCo Used SUV/Trucks). Cost of Sales—Used SUV/Trucks—Retail Lease, and reconditioning costs should be charged to Account 4766, Cost of Sales—Used SUV/Trucks—Reconditioning Retail (Non Certified).
- 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 3751, Used SUV/Trucks—Retail (Non Certified)—Overallowances, to which overallowances should be debited. Gross sales amounts should be credited to Account 3765. |
|
