October 30, 2016 admin

Used CPO Trucks (Franchise Only)—Retail Lease

Sales and Cost of Sales

USED CPO TRUCKS (FRANCHISE ONLY)—RETAIL LEASE ACCOUNT
SALES 3975
COST OF SALES  4975, 4976

ACCOUNT EXPLANATION

Sales: Value of lease contracts, less any discounts or overallowances, of used cpo light trucks (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 cpo trucks (franchise only) sold to lease customers.

NOTE: Separate numbers have been assigned for FoMoCo and non FoMoCo retail leases.

FoMoCo Used—Retail lease sales (non cpo)/cost of sales 3975/4975
Non FoMoCo Used—Retail lease sales/cost of sales 3770/4770

*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 CPO Trucks (Franchise Only)—Retail Lease  3975, 3770
             
  Costing of sale of vehicle sold to F.M.C.C. UV
    Cost of Sales—Retail Leases—Used CPO Trucks (Franchise Only) Retail Lease 4975, 4770
    Cost of Sales—Reconditioning—Used CPO Trucks (Franchise Only) Retail Lease 4976
      Inventory—Used CPO Trucks (Franchise Only) 1385
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 trucks are leased, the inventory value of the units should be charged to Account 4975 Ford Motor Company Used CPO Trucks (Franchise Only) (4770 Non FoMoCo Used Trucks), Cost of Sales—Used CPO Trucks (Franchise Only)—Retail Lease, and reconditioning costs should be charged to Account 4976, Cost of Sales—Used CPO Trucks (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 3971, Used CPO Trucks (Franchise Only) Retail—Overallowances, to which overallowances should be debited. Gross sales amounts should be credited to Account 3975.