490 Tires
Sales
Fixed Operations
Sales Synopsis
Account 490 is established to record the sales of Tires by the Parts and Accessories Department.
Debits |
Credits |
|
|
690 Tires
Cost of Sales
Fixed Operations
Cost of Sales Synopsis
Account 690 is established to record the Cost of Sales of Tires sold in Account 490 above.
Debits |
Credits |
|
|
Example 1
Record a cash sale of $442 for the sale of mechanical labor and tires. The labor sale is $85. The tires sale is $340 and the sales tax is $17. The cost of labor is $25 and the parts cost is $285.
Journal: Service Sales - Cash
Entry: |
|
Debit |
Credit |
Account 225 |
Cash Sales |
$442 |
|
Account 660A |
Cost of Sales – Customer Labor – Cars & Light Duty Trucks |
$25 |
|
Account 690 |
Cost of Sales – Tires |
$285 |
|
Account 243 |
Inventory – Tires |
|
$285 |
Account 247A |
Inventory – Work in Process – Mechanical |
|
$25 |
Account 324 |
Sales Taxes Payable |
|
$17 |
Account 460A |
Sales – Customer Labor – Cars & Light Duty Trucks |
|
$85 |
Account 490 |
Sales – Tires |
|
$340 |
Note:
These sales may be costed individually at actual cost. However, at each month end, inventory adjustments to physical count values should be reflected in the applicable cost of sales accounts.