481 Parts - Internal
Sales
Fixed Operations
Sales Synopsis
Account 481 is established to record the sales of Parts sold on Internal Repair Orders for work performed for other departments
Debits |
Credits |
|
|
Example 1
Record a $400 internal repair order for reconditioning to a used truck that is in inventory. The labor sale is $300 and the part sale is $100. The cost of labor is $90 and the parts cost is $80.
Journal: Internal Sales
Entry: |
|
Debit |
Credit |
Account 241 |
Inventory – Used Trucks |
$400 |
|
Account 663 |
Cost of Sales – Internal Labor - Mechanical |
$90 |
|
Account 681 |
Cost of Sales – Parts – Internal |
$80 |
|
Account 242 |
Inventory – Parts & Accessories |
|
$80 |
Account 247A |
Inventory – Work in Process – Mechanical |
|
$90 |
Account 463 |
Sales – Internal Labor – Mechanical |
|
$300 |
Account 481 |
Sales – Parts – Internal |
|
$100 |
681 Parts - Internal
Cost of Sales
Fixed Operations
Cost of Sales Synopsis
Account 681 is established to record the Cost of Sales for Parts sold on Internal Repairs Orders above.
Debits |
Credits |
|
|
Example 1
Record the sale of a CD changer for a demonstrator unit in the amount of $335. The mechanical labor sale for CD changer installation is $85. The CD changer sale is $250. The cost of internal labor is $25. The CD changer cost is $175.
Journal: Internal Sales
Entry: |
|
Debit |
Credit |
Account 230 |
Inventory – Demonstrators |
$335 |
|
Account 663 |
Cost of Sales – Internal Labor Mechanical |
$25 |
|
Account 681 |
Cost of Sales – Parts – Internal |
$175 |
|
Account 242 |
Inventory – Parts & Accessories |
|
$175 |
Account 247A |
Inventory – Work in Process – Mechanical |
|
$25 |
Account 463 |
Sales – Internal Labor Mechanical |
|
$85 |
Account 481 |
Sales – Parts – Internal |
|
$250 |