491 Gas, Oil and Grease

Sales

Fixed Operations

Sales Synopsis

Account 491 is established to record the sales of Gas, other fuel, Oil, Grease and other lubricants sold by the Parts and Accessories Department.

Debits

Credits

 

  1. Actual selling price of gasoline (fuel), oil, grease and similar materials (lubricants) sold

 

691 Gas, Oil and Grease

Cost of Sales

Fixed Operations

Cost of Sales Synopsis

Account 691 is established to record the Cost of Sales of the items sold in Account 491 above.

Debits

Credits

  1. Cost of gasoline (fuel), oil, grease and similar materials (lubricants) sold

  2. Adjustment to decrease the value of Account 244, Gas, Oil and Grease (inventory)

 

  1. Adjustment to increase the value of Account 244, Gas, Oil and Grease (inventory)

Example 1

Record an over the counter sale of oil to a retail customer for $13.  The gas, oil and grease sale is $12 and the sales tax is $1.  The cost of the gas, oil and grease is $7.

Journal: Parts Sales

Entry:

 

Debit

Credit

Account 225

Cash Sales

$13

 

Account 691

Cost of Sales – Gas, Oil and Grease

$7

 

Account 244

Inventory – Gas, Oil and Grease

 

$7

Account 324

Sales Taxes Payable

 

$1

Account 491

Sales – Gas, Oil and Grease

 

$12

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.