Gap Insurance Contracts Income—New

• ACCOUNT EXPLANATION
• TRANSACTIONS
• COMMENTS

Income from the sale of insurance on new vehicles.

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

• Gap insurance commission income should be calculated by the dealership and recorded with the sale of the vehicle.
• Dealership records should be reconciled each month with the statements received from the insurance companies.
• In some areas, commissions to dealers on the sale of insurance are prohibited by law. Legal counsel should be consulted regarding this matter.