October 30, 2016 admin

Used SUV/Trucks—Remarketed Retail Lease

Sales and Cost of Sales

USED SUV/TRUCKS—REMARKETED RETAIL LEASE ACCOUNT
SALES  3965
COST OF SALES  4965
ACCOUNT EXPLANATION
Sales: Value of lease contracts, less any discounts or overallowances, of used remarketed SUV/Trucks leased to retail customers, usually under Red Carpet Lease Program.

Cost of Sales: Inventory value of units leased, excluding reconditioning costs, of used remarketed SUV/Trucks 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—Used Remarketed SUV/Trucks—Retail Lease 3965
Costing of sale of vehicle sold to FMCC UV
Cost of Sales—Used Remarketed SUV/Trucks—Retail Lease 4965
Cost of Sales—Used Remarketed SUV/Trucks—Reconditioning—Retail Lease/Retail 4966
Inventory—Used SUV/Trucks 1365
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 SUV/Trucks are leased, the inventory value, excluding reconditioning costs, of the units should be charged to Account 4965, Cost of Sales—Used Remarketed SUV/Truck—Remarketed, and reconditioning costs should be charged to Account 4966, Cost of Sales—Used Remarketed SUV/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 SUV/Trucks—Retail—Overallowances, to which overallowances should be debited. Gross sales amounts should be credited to Account 3965.