811 Accessories – Used Vehicles (Sales)

Finance & Insurance Activity

Used Vehicle

Sales Synopsis

Account 811 is established to record the Sales of Accessories on Used Vehicles by the F & I Department.

Debits

Credits

 

  1. The selling price of Accessories sold with Used Vehicles by the F & I Department

 

Comments

Sub-accounts 811A and 811B for Used Cars and Used Trucks respectively should be established to break out Accessory sales.

861 Accessories-Used Vehicles (Cost of Sales)

Finance & Insurance Activity

Used Vehicle

Cost of Sales Synopsis

Account 861 is established to record the Cost of Sales of Accessories on Used Vehicles by the F & I Department.

Debits

Credits

  1. The Cost of Sales of Accessories sold with Used Vehicles by the F & I Department

 

 

Example 1

Record the sale of an Other Used Car in the amount of $17,076 that has a sale of an accessory sold for $450 by the F & I Department. The car was paid partly with a $14,827 finance contract and $4,000 from the trade-in. The finance contract reserve is $853, sales tax is $876, insurance commissions earned from the sale of a GAP insurance policy are $150 and Registration Fees are $125.  The inventory value of the used vehicle sold is $16,176 of which $876 is due to Reconditioning and $300 is due to the cost of the accessory.  The cost of the GAP insurance policy is $150.

Journal: Used Car Sales

Entry:

 

Debit

Credit

Account 205

Contracts in Transit

$14,827

 

Account 262

Due from Finance Companies

$853

 

Account 646B

Cost of Sales – Used Cars Retail – Other

$15,000

 

Account 647B

Reconditioning – Used Cars Other

$876

 

Account 861

Cost of Sales – Accessories - Used

$300

 

Account 240

Inventory – Used Cars

$4,000

 

Account 446B

Sales – Used Cars Retail – Other

 

$17,076

Account 240

Inventory – Used Cars

 

$16,176

Account 300

Accounts Payable – Trade Creditors

 

$150

Account 324A

Sales Taxes Payable – Excise Taxes

 

$876

Account 808

Finance Income – Used

 

$853

Account 809

Insurance Commissions Earned – Used Cars

 

$150

Account 811

Sales - Accessories – Used 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.