810 Accessories-New Vehicles (Sales)

Finance & Insurance Activity

New Vehicle

Sales Synopsis

Account 810 is established to record the Sales of Accessories on New Vehicles by the F & I Department.

Debits

Credits

 

  1. The selling price of Accessories sold on New Vehicles by the F & I Department

 

Comments

Sub-accounts 810A and 810B for Cars and Trucks respectively should be established to break out Accessory sales on Cars and Trucks.

860 Accessories-New Vehicles (Cost of Sales)

Finance & Insurance Activity

New Vehicle

Cost of Sales Synopsis

Account 860 is established to record the Cost of Sales of Accessories on New Vehicles by the F & I Department.

Debits

Credits

  1. The Cost of Sales of Accessories sold on New Vehicles by the F & I Department

 

 

Example 1

Record a new vehicle sale in the amount of $17,571 with a $450 accessory sold by the F & I Department.  The finance contract reserve is $300, the sales tax is $901 and the Registration Fees are $125.  The inventory value is $17,021 and the cost of the accessory is $300.

Journal: New Vehicle Sales

Entry:

 

Debit

Credit

Account 205

Contracts in Transit

$19,047

 

Account 262

Due from Finance Companies

$300

 

Account 600-618

Cost of Sales – New Cars – Retail

$16,721

 

Account 860

Cost of Sales – Accessories – New Cars

$300

 

Account 400-418

Sales – New Cars – Retail

 

$17,571

Account 231

New Car Inventory

 

$17,021

Account 324A

Sales Taxes Payable – Excise Taxes

 

$901

Account 806

Finance Income – New

 

$300

Account 810

Sales – Accessories – New Cars

 

$450

Account 910

Document Handling Fees

 

$125

Note:

Transactions, which are related, should be recorded in separate sub-accounts.  Sub-accounts serve to keep records organized for future analysis and auditing.  The sub-accounts in these examples are designated by a letter following the account number (suffix).  Please refer to your DSP's instructions for establishing sub-accounts.