October 30, 2016 admin

Used Certified Cars (Franchise Only)—Retail Lease

Sales and Cost of Sales

USED CERTIFIED CARS (FRANCHISE ONLY)—RETAIL LEASE ACCOUNT
SALES 3835
COST OF SALES  4835, 4836
ACCOUNT EXPLANATION
Sales: Value of lease contracts, less any discounts or overallowances, of used certified cars (franchise only) leased to retail customer, usually under Red Carpet Lease Programs.

Cost of Sales: Inventory value of units leased, excluding reconditioning costs of used certified cars (franchise only) 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 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 Certified Cars (Franchise Only)—Retail Lease  3835
Costing of sale of vehicle sold to F.M.C.C. UV
Cost of Sales—Retail Leases—Used Certified Car (Franchise Only) Retail Lease  4835
Cost of Sales—Reconditioning—Used Certified Car (Franchise Only) Retail Lease 4836
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 leased, the inventory value, excluding reconditioning costs, of the units should be charged to Account 4835 Ford Motor Company Used Certified Cars (Franchise Only), Cost of Sales—Used Certified Cars (Franchise Only)—Retail Lease, and reconditioning costs should be charged to Account 4836, Cost of Sales—Used Certified Cars (Franchise Only)—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 3836, Used Certified Cars (Franchise Only)—Retail—Overallowances, to which overallowances should be debited. Gross sales amounts should be credited to Account 3835.