Extended Service Contract Income—New

• ACCOUNT EXPLANATION
• TRANSACTIONS
• COMMENTS

Income from the sale of New Extended Service Plan Contracts offered By Ford Motor Company and other plans offered by the dealer but not sponsored by the Company.

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

• Income earned on Service Contracts for used vehicles should be recorded in Account 5140, Service Contract Income—Used.
• Dealers are reimbursed for repairs in excess of the deductible amount paid by the customer under the Company’s Extended Service Plan by submission of a warranty claim form 1863. It is recommended that the “1863s” be clearly identified as Extended Service Plan claims when they are used for this purpose so they may readily be distinguished from regular warranty claims.