467 Parts - Customer Mechanical Repair Orders

467 Parts – Customer Mechanical Repair Orders –
Cars and Light Duty Trucks

468 Parts – Customer Mechanical Repair Orders – Commercial, Fleet, & Medium Duty Trucks

Sales

Fixed Operations

Sales Synopsis

Accounts 467 and 468 are established to record the sales of Parts sold on Customer Mechanical Repair Orders.

Debits

Credits

The actual selling price of Parts sold on Customer Mechanical Repair Orders
The actual selling price of Parts sold on Service Contract Repair Orders

667 Parts – Customer Mechanical Repair Orders –
Cars and Light Duty Trucks

668 Parts – Customer Mechanical Repair Orders – Commercial, Fleet, & Medium Duty Trucks

Cost of Sales

Fixed Operations

Cost of Sales Synopsis

Accounts 667 and 668 respectively are established to record the cost of sales for the Parts sold in Accounts 467 and 468 above.

Debits

Credits

The cost of Parts sold on customer mechanical repair orders
The cost of Parts sold on Service Contract Repair Orders

Example 1

Record a customer cash sale of $618 for mechanical labor and parts. The parts sale is $250. The customer labor sale is $340. The sales tax is $13 and the shop supplies are $15. The parts cost is $80. The cost of labor is $100 and the cost of shop supplies is $10.

Journal: Service Sales - Cash

Entry:		Debit	Credit
Account 225	Cash Sales	$618
Account 660A	Cost of Sales – Customer Labor – Cars & Light Trucks	$100
Account 667	Cost of Sales – Parts Mechanical Repair Orders & Light Duty Trucks	$80
Account 669	Cost of Sales – Shop Supplies	$10
Account 242	Inventory – Parts & Accessories		$80
Account 242	Inventory – Parts & Accessories		$10
Account 247A	Inventory – Work in Process – Mechanical		$100
Account 324	Sales Taxes Payable		$13
Account 460A	Sales – Customer Labor – Cars & Light Duty Trucks		$340
Account 467	Sales – Parts Mechanical Repair Orders & Light Duty Trucks		$250
Account 469	Sales – Shop Supplies		$15

Example 2

Record a customer cash sale of $1,326 for mechanical labor and parts. The part sale is $750. The customer labor sale is $500. The sales tax is $38 and the shop supplies are $38. The parts cost is $500. The cost of the labor is $125 and the cost of the shop supplies is $28.

Journal: Service Sales - Cash

Entry:		Debit	Credit
Account 225	Cash Sales	$1,326
Account 661A	Cost of Sales – Customer Labor – Commercial, Fleet & Medium Duty Trucks	$125
Account 668	Cost of Sales – Parts Mechanical Repair Orders Commercial, Fleet, & Medium Duty Trucks	$500
Account 669	Cost of Sales – Shop Supplies	$28
Account 242	Inventory – Parts & Accessories		$500
Account 242	Inventory – Parts & Accessories		$28
Account 247A	Inventory – Work in Process – Mechanical		$125
Account 324	Sales Taxes Payable		$38
Account 461A	Sales – Customer Labor – Commercial, Fleet, & Medium Duty Trucks		$500
Account 468	Sales – Parts Mechanical Repair Orders – Commercial, Fleet, & Medium Duty Trucks		$750
Account 469	Sales – Shop Supplies		$38

Comments

Until a new account can be established , Parts sold on Service Contract Repair Orders are to be recorded in the accounts above along with Parts sold on Customer Mechanical Repair Orders.

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.