Parts—Shop Purchase Incentive – Ford Online Accounting Manual

Sales and Cost of Sales

FORD OF CANADA ONLY	PARTS—SHOP PURCHASE INCENTIVE	ACCOUNT
		6450

Discounts earned on certain parts subject to Purchase Discount, Schedule Quantity Discount and Direct From Source Discount.

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

			Jrnl.	Dr.	Cr.

Monthly entry to transfer applicable amount of discount earned from Reserve for Parts Purchase Discount Account			SE
	Reserve For Parts Purchase Discount			1431
		Parts—Shop Purchase Discount			6450

See Account 1431—Reserve for Parts Purchase Discount for method of determining amount to be transferred from Reserve to Income.
Discount on applicable parts sold wholesale should be credited to Account 6410, Parts—Wholesale Purchase Discount.
Discount on applicable parts sold Counter Retail should be credited to Account 6421.