October 30, 2016 admin

Car Incentives

Sales and Cost of Sales

CAR INCENTIVES ACCOUNT
4380

ACCOUNT EXPLANATION

Income from car sales incentive programs by Ford Motor Company.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  Accrual of current month’s estimated incentive earnings G
    Ford Receivable—Other 1200
      Car Incentives 4380
             
  Check received from Ford Motor Co. in settlement of claim CR
    Cash in Bank—General 1001
      Ford Receivable—Other 1200
             
  Car incentive charged back through Ford Motor Company parts account P
    Car Incentives 4380
      Accounts Payable—Trade 2100
COMMENTS
  • Subsidiary records should be maintained, and amounts earned should be computed in accordance with Ford Motor Company instructions.