Used Medium Trucks—Retail Lease

• ACCOUNT EXPLANATION
• TRANSACTIONS
• COMMENTS

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

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

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers

• 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 medium trucks are leased, the inventory value, excluding reconditioning costs, of the units should be charged to Account 4865, Cost of Sales—Used Medium Trucks—Retail Lease, and reconditioning costs should be charged to Account 4866, Cost of Sales—Used Medium Trucks—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 3751, Used Trucks—Retail—Overallowances, to which overallowances should be debited. Gross sales amounts should be credited to Account 3865.