October 30, 2016 admin

Remarketed Cars—Retail Lease

Sales and Cost of Sales

REMARKETED CARS—RETAIL LEASE ACCOUNT
SALES  3815
COST OF SALES  4815

ACCOUNT EXPLANATION

Sales: Value of lease contracts, less any discounts or overallowances, of used remarketed cars leased to retail customers, usually under Red Carpet Lease Program.

Cost of Sales: Inventory value of units leased, excluding reconditioning costs of used remarketed cars sold to lease customers.

*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 FMCC UV
    Accounts Receivable—FMCC Lease Plan 1135
    Accounts Receivable—FMCC Deferred Gross 1836
      Sales—Remarketed Cars—Retail Lease 3815
             
  Costing of sale of vehicle sold to FMCC UV
    Cost of Sales—Used Remarketed Car—Retail Lease 4815
    Cost of Sales—Used Remarketed Car—Reconditioning—Retail Lease 4816
      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 used remarketed cars are leased, the inventory value, excluding reconditioning costs, of the units should be charged to Account 4815, Cost of Sales—Remarketed Cars—Retail Lease, and reconditioning costs should be charged to Account 4816, Cost of Sales—Remarketed Retail Lease Cars—Reconditioning Retail.
  • 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 3816, Remarketed Cars—Retail—Overallowances, to which overallowances should be debited. Gross sales amounts should be credited to Account 4815.