October 30, 2016 admin

Parts—Materials

Sales and Cost of Sales

PARTS—MATERIALS ACCOUNT
SALES  5540/5545
COST OF SALES  6540/6545

ACCOUNT EXPLANATION

Sales: Selling prices of general shop materials such as grease, oil, rags, abrasive and sanding paper, etc., sold to the service department or body shop in bulk.

Cost of Sales: Cost of such items.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  Sandpaper sold to the body shop in bulk PS
    Tools & Supplies—Body Shop 7870
      Sales—Parts—Materials 5540
      Sales—Parts—Materials—Quick Lane 5545
    Cost of Sales—Parts—Materials 6540
    Cost of Sales—Parts—Materials—Quick Lane 6545
      Inventory—Body Shop Materials 1442
COMMENTS
  • Sales of materials to other departments in the dealership should be recorded at an internal rate established by the dealer, but not in excess of the retail selling price.