Used Cars—Other Franchise—Reconditioning—Retail/Retail Lease

Sales and Cost of Sales

USED CARS—OTHER FRANCHISE—RECONDITIONING—RETAIL/RETAIL LEASE	ACCOUNT
	SALES	4721
	COST OF SALES	4731

Reconditioning costs on Non FoMoCo Used Retail/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—other franchise sold to retail customer			UV
	Cost of Sales—Used Cars—Other Franchise—Retail			4730
	Cost of Sales—Used Cars—Other Franchise—Retail Reconditioning			4731
		Inventory—Used Cars—Other Franchise			1330

Costing of used car—other franchise sold to retail lease customer
	Cost of Sales—Used Cars—Other Franchise—Retail Lease			4720
	Cost of Sales—Used Cars—Other Franchise—Retail Lease Reconditioning			4721
		Inventory—Used Cars—Other Franchise			1330

Reconditioning costs on used cars in inventory should be charged initially to Account 1330, Inventory—Used Cars—Other Franchise 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 4730, Cost of Sales—Used Cars Other Franchise—Retail or Account 4720, Used Cars Other Franchise—Retail Lease and reconditioning costs should be charged to Account 4731—Used Cars Other Franchise—Retail or Account 4721—Used Cars Other Franchise—Retail Lease.
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.