October 30, 2016 admin

Parts—Sublet

Sales and Cost of Sales

PARTS—SUBLET ACCOUNT
SALES  5480/5485
COST OF SALES  6480/6485

ACCOUNT EXPLANATION

Sales: The selling price to the service of body shop departments of parts installed on customer vehicles by sublet sources identified by, and doing business with, the parts department. (The service department or body shop may further mark up the price of these parts to the customer.) For example: glass replacement.

Cost of Sales: Cost of the above parts.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  Installation of a new windshield by a sublet source on a customer’s car. PS
    Accounts Recievable—Other 1130
      Sales—Parts—Sublet 5480
      Sales—Parts—Sublet—Quick Lane     5485
             
  Parts costed out at time of sale PS
    Cost of Sales—Parts—Sublet 6480
    Cost of Sales—Parts—Sublet—Quick Lane 6485
      Inventory—Parts—Ford 1400
      Inventory—Parts—Other 1410