483 Parts – Wholesale

Sales

Fixed Operations

Sales Synopsis

Account 483 is established to record the sales of Parts sold to other businesses for the purpose of resale to end-users.

Debits

Credits

  1. Actual selling price of Parts returned by Wholesale Customers

  1. Actual selling price of Parts sold to other dealers, body shops, independent garages, and other “jobbers” for the purpose of resale to retail customers

 

683 Parts – Wholesale

Cost of Sales

Fixed Operations

Cost of Sales Synopsis

Account 683 is established to record the Cost of Sales for the Parts sold in Account 483 above.

Debits

Credits

  1. Cost of Parts sold to other dealers, body shops, independent garages, and other “jobbers” for the purpose of resale

 

  1. Cost of Parts returned by customers

Example 1

Record parts sold on account to a wholesale customer for $1,127.  The parts cost is $869.

Journal: Parts Sales - Charges

Entry:

 

Debit

Credit

Account 220B

Accounts Receivable – Customers – Service and Parts

$1,127

 

Account 683

Cost of Sales – Parts – Wholesale

$869

 

Account 242

Inventory – Parts & Accessories

 

$869

Account 483

Sales – Parts – Wholesale

 

$1,127

Comments

Parts sold to wholesale accounts are normally exempt from sales tax provided that the wholesale customer is able to produce the required government issued tax exemption account number.  Federal, state and local requirements should be strictly observed.  Professional tax and accounting advice should be obtained regarding the proper documentation of tax-exempt transactions.