078 Interest – Floorplan Credit

Expenses

Semi-Fixed

Synopsis

Credits received from the manufacturer to offset Floorplan Interest charges are posted to Account 078, Interest – Floorplan Credit.

Debits

Credits

 

  1. Interest credits received from the factory on new vehicles on Floorplan

 

Example 1

Record the floorplan interest credit of $6,379 received from the factory.

Journal: Purchase

Entry:

 

Debit

Credit

Account 300

Accounts Payable – Trade Creditors

$6,379

 

Account 078-01

Interest – Floorplan Credit – New Vehicles Department

 

$6,379

Distribution of Expenses

 

Departmental Distribution

078 Interest – Floorplan Credit

New Veh.

Used Veh.

Lease & Rental

Mechanical

Body Shop

Parts & Access.

Gen & Admin.

 

01

02

03

05

06

07

09

Credit Received to Offset Floorplan Interest on New Vehicles

(Credit)

from Factory

 

 

 

 

 

 

Comments

If the manufacturer reimburses the dealership for Floorplan Interest, the amount is recorded in this account.  Careful attention should be paid to the program rules.