October 30, 2016 admin

Rebates—Unused Parts Return Allowance

Sales and Cost of Sales

REBATES—UNUSED PARTS RETURNED ALLOWANCE ACCOUNT
6560/6561/6562

ACCOUNT EXPLANATION

Cash rebates of unused parts return allowances.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  Rebate of unused parts return allowance due from Ford Motor Company at the end of the return year G
    Ford Receivable—Other 1200
      Rebates—Unused Parts Return Allowance—FoMoCo 6560
      QL/FL/QCSC Rebates—Unused Parts Return Allowance     6561
      Rebates—Inventory Management Allowance     6562
             
  Cash received from unused parts return allowances CR
    Cash in Bank—General 1001
      Ford Receivable—Other 1200
COMMENTS
  • Refer to Ford Motor Company instructions for the Parts Inventory Protection Plan.
  • Under this plan, dealers will receive a cash rebate of unused parts return allowances as established by the Ford Parts and Service Department on the total allowance earned in the rebate year.