252 Other (Inventory)

Assets

Inventories

Synopsis

Account 252 is established to record the inventory value of Other merchandise on hand.

Debits

Credits

The Cost of other merchandise acquired
The replacement value of parts, accessories and optional equipment removed from new other automotive items and placed in inventory
The Adjustment for the difference between book and physical count values

The Inventory value of other merchandise sold and otherwise disposed of
The Adjustments for the difference between book and physical court values

Example 1

Record the purchase of a farm implement in the amount of $1,475.

Journal: Cash Disbursements and Purchase

Entry:		Debit	Credit
Account 252	Other Inventory	$1,475
Account 300	Accounts Payable – Trade Creditors		$1,475

Example 2

Record the cash sale of the above farm implement in the amount of $2,125 with sales tax of $105.

Journal: Parts Sales - Cash

Entry:		Debit	Credit
Account 225	Cash Sales	$2,230
Account 692	Cost of Sales – Parts – Miscellaneous	$1,475
Account 492	Sales – Parts – Miscellaneous		$2,125
Account 252	Other Inventory		$1,475
Account 324	Sales Taxes Payable		$105

Comments

A debit balance represents the inventory value if regularly stocked merchandise intended for resale that is not otherwise provided for. This should include both new and used items such as:

a. Appliances

b. Farm implements

c. Hardware

d. Motors

e. Parts, accessories and optional equipment for items in Account 238, Other Automotive (inventory)

Note:

A detail of these items should be made in this account or in a suitable subsidiary record.