October 30, 2016 admin

Finance Contracts Income—Used

Sales and Cost of Sales

FINANCE CONTRACTS INCOME—USED ACCOUNT
5100

ACCOUNT EXPLANATION

Income from the sale of used vehicle finance contracts to finance institutions.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  Deferred portion of finance income on finance contract on used vehicle UV
    Finance Receivables—Deferred 1800
      Finance Income—Used 5100
             
  Current portion of finance income earned on finance contract on used vehicle UV
    Finance Receivables—Current 1280
      Finance Income—Used 5100
COMMENTS
  • As finance participation varies with each finance institution, this income should be calculated and recorded on an individual contract basis when the sale of the vehicle is recorded.
  • see Account 5110 for a discussion on how to handle adjustments to Finance contract Income.