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 |
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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 |
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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 |
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|
|
|
|
|
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.