October 30, 2016 admin

Used/Remarketed Cars—Inventory Adjustments

Sales and Cost of Sales

USED/REMARKETED CARS—INVENTORY ADJUSTMENTS COST OF SALES ACCOUNT
4702

ACCOUNT EXPLANATION

Adjustments of the inventory value of used, used retail lease and remarketed cars on hand to current estimated wholesale value.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly write-down of used cars in inventory to current estimated wholesale value SE
    Cost of Sales—Used Cars—Inventory Adjustments 4702
      Inventory—Used Cars 1350
             
  Monthly write-down of remarketed cars in inventory to current estimated wholesale value SE
    Cost of Sales—Used Cars—Inventory Adjustments 4702
      Inventory—Remarketed Cars 1355
COMMENTS
  • If at month end the inventory cost of a unit exceeds its current estimated wholesale value, the excess amount should be charged to this account.
  • Inventory adjustments to used cars on hand should be entered on the subsidiary vehicle inventory record.