Used (Non Certified) & Remarketed Cars—Reconditioning—Retail/Retail Lease

Sales and Cost of Sales

USED (NON CERTIFIED) & REMARKETED CARS—RECONDITIONING—RETAIL/RETAIL LEASE	COST OF SALES ACCOUNT
	4701-4801 – 4716-4816

Reconditioning costs on (Non Certified) used, remarketed and used (Non Certified) retail lease cars sold to retail customers.

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

			Jrnl.	Dr.	Cr.

Costing of used car (Non Certified) sold to retail customer			UV
	Cost of Sales—Used Cars—Retail (Non Certified)			4700
	Cost of Sales—Used Cars (Non Certified)—Reconditioning—Retail			4701
		Inventory—Used Cars (Non Certified)			1350

Costing of used remarketed car sold to retail customer			UV
	Cost of Sales—Remarketed Cars—Retail			4800
	Cost of Sales—Remarketed Cars—Reconditioning—Retail			4801
		Inventory—Remarketed Cars			1355

Costing of used retail lease car to retail customer			UV
	Cost of Sales—Used Car Retail Lease—Retail (Non Certified)			4715
	Cost of Sales—Used Car Retail Lease Reconditioning—Retail (Non Certified)			4716
		Inventory—Used Cars (Non Certified)			1350

Costing of remarketed retail lease car to retail customer			UV
	Cost of Sales—Remarketed retail lease car to retail customer			4815
	Cost of Sales—Remarketed retail lease Reconditioning—Retail			4816
		Inventory—Remarketed Cars			1355

Reconditioning costs on used cars in inventory should be charged initially to Account 1350, Inventory—Used Cars(Non Certified), and reconditioning costs on remarketed used cars should be charged initially to Account 1355, Inventory, Remarketed Cars and recorded on the used vehicle record. When used cars are retailed or retail leased, the inventory value excluding reconditioning costs of the units should be charged to Account 4700, Cost of Sales—Used Cars—Retail (Non Certified) or Account 4715, Cost of Sales—Used Car Retail Lease (NON Certified)—Retail, when remarketed cars are retailed or retail leased, the inventory value excluding reconditioning costs of the units should be charged to Account 4800, Cost of Sales—Remarketed Cars—Retail or Account 4815, Cost of Sales—Remarketed Retail Lease Cars—Retail and reconditioning costs should be charged to these accounts.
After the sale, free service and warranty service for which the dealership is responsible should be charged to Account 7230, Free Service/Maintenance & Policy—Used.