October 30, 2016 admin

Used Certified Cars (Franchise Only)—Retail

Sales and Cost of Sales

USED CERTIFIED CARS (FRANCHISE ONLY)—RETAIL ACCOUNT
SALES  3830
COST OF SALES  4830
ACCOUNT EXPLANATION
Sales: selling price, less overallowance, of used certified (Franchise Only) cars sold to retail customers.

Cost of Sales: Inventory value, excluding reconditioning costs, of used certified cars sold to retail customers.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
Jrnl. Dr. Cr.
Used car sold to retail customer for cash plus trade-in UV
Cash Sales—Clearing 1010
Inventory—Used Certified Cars (Franchise Only) (wholesale value of trade-in less estimated reconditioning cost) 1380
Sales—Used Certified Cars (Franchise Only)—Retail 3830
Used car costed out at time of sale UV
Cost of Sales—Used Certified Cars (Franchise Only)—Retail 4830
Cost of Sales—Used Certified Cars (Franchise Only)—Reconditioning—Retail 4831
Inventory—Used Certified Cars (Franchise Only) 1380
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 retailed, the inventory value, excluding reconditioning costs, of the units should be charged to Account 4830, Cost of Sales—Used Certified Cars (Franchise Only)—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 3831 Used Certified Cars (Franchise Only)—Retail—Overallowances, to which overallowances should be debited. Gross sales amounts should be credited to Account 3830.