October 30, 2016 admin

Remarketed Cars—Wholesale

Sales and Cost of Sales

REMARKETED CARS—WHOLESALE ACCOUNT
SALES  3805
COST OF SALES  4805

ACCOUNT EXPLANATION

Remarketed cars are used Ford Motor Company cars sold to Ford and Lincoln Mercury dealers at closed auction. (i.e. Fleet repurchase vehicles, Ford Company Sales Vehicles, etc.)

Sales: Selling price of remarketed cars sold to wholesale customers 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.
  Remarketed car sold to wholesale customer for cash UV
    Cash Sales—Clearing 1010
      Sales—Remarketed Cars—Wholesale 3805
             
  Remarketed car costed out at time of sale UV
    Cost of Sales—Remarketed Cars—Wholesale 4805
    Cost of Sales—Remarketed Cars—Reconditioning—Wholesale 4807
      Inventory—Remarketed Cars 1355
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 remarketed cars are wholesaled, the inventory value, excluding reconditioning costs, of the units should be charged to Account 4805, Cost of Sales—Remarketed Cars—Wholesale. Accumulated reconditioning costs should be charged to Account 4807, Cost of Sales—Remarketed Cars—Reconditioning—Wholesale.