October 30, 2016 admin

Used Medium/Heavy Trucks—Reconditioning—Retail/Retail Lease

Sales and Cost of Sales

USED MEDIUM/HEAVY TRUCKS—RECONDITIONING—RETAIL/RETAIL LEASE COST OF SALES ACCOUNT
4861-4866 – 4871-4876

ACCOUNT EXPLANATION

Reconditioning costs on used, remarketed and used retail lease medium/heavy trucks sold to retail customers.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  Costing of sale of used medium/heavy trucks sold to a retail customer UV
    Cost of Sales—Used Medium/Heavy Trucks Retail 4860(4870)
    Cost of Sales—Used Medium/Heavy Trucks—Reconditioning—Retail   4861(4871)  
      Inventory—Used Trucks 1360
             
  Costing of sale of remarketed medium/heavy trucks sold to a retail customer UV
    Cost of Sales—Remarketed Trucks Retail 4950
    Cost of Sales—Remarketed Trucks—Reconditioning—Retail   4951  
      Inventory—Remarketed Trucks 1365
             
  Costing of used retail lease medium/heavy truck to a retail customer UV
    Cost of Sales—Used Medium/Heavy Trucks Retail Lease Retail 4865(4875)
    Cost of Sales—Used Medium/Heavy Truck Retail Lease Reconditioning—Retail   4866(4876)  
      Inventory—Used Trucks 1360
             
  Costing of remarketed retail lease medium/heavy truck to retail customer UV
    Cost of Sales—Remarketed Retail Lease Truck to Retail Customer 4965
    Cost of Sales—Remarketed Retail Lease Trucks—Reconditioning—Retail   4966
      Inventory—Remarketed Trucks     1365
COMMENTS
  • Reconditioning costs on used medium/heavy trucks in inventory should be charged initially to Account 1360, Inventory—Used Trucks, and reconditioning costs on remarketed used medium/heavy trucks should be charged initially to Account 1365, Inventory—Remarketed Trucks, and recorded on the used vehicle inventory record. When used medium/heavy trucks are retailed or retail leased, the inventory value, excluding reconditioning costs, of the units should be charged to Account 4860 (4870), Cost of Sales—Used Medium/Heavy Trucks—Retail or Account 4865 (4875), Cost of Sales—Used Medium/Heavy Truck Retail Lease—Retail. When remarketed medium/heavy trucks are retailed or retail leased, the inventory value, excluding reconditioning costs of the units, should be charged to Account 4951, Cost of Sales—Remarketed Trucks—Retail or Account 4965, Cost of Sales—Remarketed Retail Lease Trucks—Retail and reconditioning costs should be charged to these accounts.