466 Sublet Repairs - Mechanical

Sales

Fixed Operations

Sales Synopsis

Account 466 is established to record the selling price of repairs, which are performed by outside service suppliers.

Debits

Credits

 

  1. Actual selling price of mechanical sublet repairs sold

  2. Actual selling price (at claim rate) of mechanical sublet repairs for which warranty, transportation and new vehicle inspection claims are filed

 

666 Sublet Repairs - Mechanical

Cost of Sales

Fixed Operations

Cost of Sales Synopsis

Account 666 is established to record the Cost of Sales, which is defined as the purchase price of service repairs performed by outside suppliers.

Debits

Credits

  1. Actual Cost of mechanical sublet repairs sold

 

 

Example 1

Record the cash sale of sublet repairs for a service customer in the amount of $525.  The sublet repair sale is $500 and the sales tax is $25.  The cost of sale of the sublet repair is $450.

Journal: Service Sales - Cash

Entry:

 

Debit

Credit

Account 225

Cash Sales

$525

 

Account 666

Cost of Sales – Sublet Repairs

$450

 

Account 466

Sales – Sublet Repairs

 

$500

Account 246

Inventory – Sublet Repairs

 

$450

Account 324

Sales Taxes Payable

 

$25