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

Sales and Cost of Sales

USED (NON CERTIFIED) & REMARKETED SUV/TRUCK—RECONDITIONING—RETAIL/RETAIL LEASE	COST OF SALES ACCOUNT
	4751/4766 – 4951/4966

Reconditioning costs on (Non Certified) used, remarketed and used (Non Certified) retail SUV/Truck sold to retail customers.

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

			Jrnl.	Dr.	Cr.

Costing of sale of used SUV/Truck(Non Certified) sold to a retail customer			UV
	Cost of Sales—Used SUV/Truck—Retail (Non Certified)			4750
	Cost of Sales—Used SUV/Truck—Reconditioning—Retail (Non Certified)			4751
		Inventory—Used SUV/Truck (Non Certified)			1360

Costing of sale of remarketed SUV/Truck sold to a retail customer			UV
	Cost of Sales—Remarketed SUV/Truck—Retail			4950
	Cost of Sales—Remarketed SUV/Truck—Reconditioning—Retail			4951
		Inventory—Remarketed SUV/Truck			1365

Costing of used retail lease (Non Certified) SUV/Truck to retail customer			UV
	Cost of Sales—Used SUV/Truck Retail Lease—Retail (Non Certified)			4765
	Cost of Sales—Used SUV/Truck Retail Lease Reconditioning—Retail (Non Certified)			4766
		Inventory—Used SUV/Truck (Non Certified)			1360

Costing of remarketed retail lease SUV/Truck to retail customer			UV
	Cost of Sales—Remarketed Retail Lease SUV/Truck to retail customer			4965
	Cost of Sales—Remarketed Retail Lease SUV/Truck Reconditioning—Retail			4966
		Inventory—Remarketed SUV/Truck			1365

Reconditioning costs on used SUV/Truck in inventory should be charged initially to Account 1360, Inventory—Used SUV/Truck (Non Certified), and reconditioning costs on remarketed used SUV/Truck should be charged initially to Account 1365, Inventory—Remarketed SUV/Truck, and recorded on the used vehicle inventory record. When used SUV/Truck are retailed or retail leased, the inventory value, excluding reconditioning costs, of the units should be charged to Account 4750, Cost of Sales—Used SUV/Truck—Retail (Non Certified) or Account 4765, Cost of Sales—Used SUV/Truck Retail Lease (Non Certified)—Retail. When remarketed SUV/Truck are retailed or retail leased, the inventory value excluding reconditioning costs of the units should be charged to Account 4951, Cost of Sales—Remarketed SUV/Trucks—Retail or Account 4965, Cost of Sales—Remarketed Retail Lease SUV/Truck—Retail and reconditioning costs should be charged to these accounts.
After the sale, free service and warranty service on used SUV/Truck for which the dealership is responsible should be charged to Account 7230, Maintenance & Policy—Used.