Used Certified Cars (Franchise Only)—Reconditioning—Retail/Retail Lease

Sales and Cost of Sales

USED CERTIFIED CARS (FRANCHISE ONLY)—RECONDITIONING—RETAIL/RETAIL LEASE	COST OF SALES ACCOUNT
	4831, 4836

Reconditioning costs on Used Certified Cars (Franchise Only) 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 sold to retail customer			UV
	Cost of Sales—Used Certified Cars (Franchise Only)—Retail			4830
	Cost of Sales—Used Certified Cars (Franchise Only)—Reconditioning—Retail			4831
		Inventory—Used Certified Cars (Franchise Only)			1380

Costing of used retail lease car sold to retail customer			UV
	Cost of Sales—Used Certified Car (Franchise Only) Retail Lease—Retail			4835
	Cost of Sales—Used Certified Car (Franchise Only) Retail Lease Reconditioning—Retail			4836
		Inventory—Used Certified Cars (Franchise Only)			1380

Reconditioning costs on used certified pre-owned cars in inventory should be charged initially to Account 1380, Inventory—Used Certified Cars (Franchise Only). When used certified pre-owned cars are retailed or retail leased, the inventory value excluding reconditioning costs of the units should be charged to Account 4830, Cost of Sales—Used Certified Cars (Franchise Only)—Retail or Account 4835, Cost of Sales—Used Certified Cars (Franchise Only) Retail Lease—Retail.
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.