October 30, 2016 admin

Parts—Discount Earned

Sales and Cost of Sales

PARTS—DISCOUNT EARNED ACCOUNT
6550/6565

ACCOUNT EXPLANATION

Discount earned by ordering parts from Ford Motor Company on regular stock orders.

Parts Inventory Protection Plan and small order handling charge.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  Discount earned on parts purchased on stock order from Ford Motor Company P
    Accounts Payable—Trade 2100
      Parts—Discount Earned 6550
      Parts—Discount Earned—QL/FL/QCSC 6565
             
  Parts returned under the Parts Inventory Protection Plan G
    Ford Receivable—Other 1200
    Parts—Discount Earned 6550
    Parts—Return & Handling Charges/QL/FL/QCSC 6580,
6571
    Parts—Discount Earned—QL/FL/QCSC 6565
      Inventory—Parts—Ford/Other/QL/FL/QCSC 1400, 1410,
1406
COMMENTS
  • Refer to Ford Motor Company instruction for definition of stock order discounts.