Used Medium/Heavy Trucks—Inventory Adjustments – Ford Online Accounting Manual

Sales and Cost of Sales

USED MEDIUM/HEAVY TRUCKS—INVENTORY ADJUSTMENTS	COST OF SALES ACCOUNT
	4880

Adjustments of the inventory value of used medium/heavy trucks on hand to current estimated wholesale value.

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

			Jrnl.	Dr.	Cr.

Month-end write-down of used trucks in inventory to current estimated wholesale value			SE
	Cost of Sales—Used Medium/Heavy Trucks—Inventory Adjustments			4880
		Inventory—Used Trucks			1360

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 Medium/Heavy Trucks and Remarketed Medium/Heavy Trucks on hand should be entered on the subsidiary vehicle inventory record.