Sales and Cost of Sales
| USED VEHICLE INCENTIVES |
COST OF SALES ACCOUNT |
| 4890 |
|
|
ACCOUNT EXPLANATION
|
| Income from used vehicle sales incentive programs conducted by Ford Motor Company.
*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers |
TRANSACTIONS
|
|
|
|
Jrnl. |
Dr. |
Cr. |
|
|
|
Accrual of current month’s estimated incentive earnings |
|
G |
|
|
|
|
Ford Receivable—Other |
|
|
1200 |
|
|
|
|
Used Vehicle Incentives |
|
|
|
4890 |
|
|
|
|
|
|
|
|
|
Check received from Ford Motor Co. in settlement of claim |
|
CR |
|
|
|
|
Cash in Bank—General |
|
|
1001 |
|
|
|
|
Ford Receivable—Other |
|
|
|
1200 |
|
|
|
|
|
|
|
|
|
Used Vehicle incentives charged back through Ford Motor Company parts account |
|
P |
|
|
|
|
Used Vehicle Incentives |
|
|
4890 |
|
|
|
|
Accounts Payable—Trade |
|
|
|
2100 |
|
COMMENTS
|
- Subsidiary records should be maintained, and amounts earned should be computed in accordance with Ford Motor Company instructions.
|
