October 30, 2016 admin

Customer Repossession Refund—Used

Sales and Cost of Sales

CUSTOMER REPOSSESSION REFUND—USED COST OF SALES ACCOUNT
6180

ACCOUNT EXPLANATION

Direct write-off of used vehicle repossession surplus refunds.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  To record repossession surplus refunds due original customer G
    Customer Repossession Refund—Used 6180
      Customer Refunds—Repossessions 2320
COMMENTS
  • Direct write-off of all repossession surplus refunds should be recorded in this account.
  • This account is to be used in conjunction with instructions contained in Section O (Repossession Practices not available) of the Ford Dealer Accounting Procedure Manual—DETERMINATION AND REFUND OF REPOSSESSION SURPLUSES.

NOTE: See Adjustments to Income for Control Accounts 5200 (Rental Vehicle Net Income) and 5300 (Wholesale Leased Vehicle Net Income).

See Vehicle Leasing and Rental for suggested account structures for two different methods of tracking detailed sales, cost of sales, expenses and fixed expenses for rental and leasing operations, either within the dealership, or operated as separate companies or subsidiaries.