492 Miscellaneous

Sales

Fixed Operations

Sales Synopsis

Account 492, Miscellaneous is established to record the sales of items, which cannot be properly classified in any other account.

Debits

Credits

 

  1. Actual selling price of automotive merchandise, materials and supplies sold which are not otherwise provided for

  2. Actual selling price of other merchandise sold, which was recorded in Account 252 Other (inventory)

 

692 Miscellaneous

Cost of Sales

Fixed Operations

Cost of Sales Synopsis

Account 692 is established to record the Cost of Sales of items sold in Account 492 above.

Debits

Credits

  1. Cost of items recorded as sales in Account 492, Miscellaneous

  2. Adjustment to decrease the value of Account 252, Other (Inventory)

 

  1. Adjustment to increase the value of Account 252, Other (Inventory)

Example 1

Record the $2,230 sale of a farm implement.  The parts sale is $2,125 and the sales tax is $105.  The cost of the farm implement is $1,475.

Journal: Parts Sales - Cash

Entry:

 

Debit

Credit

Account 225

Cash Sales

$2,230

 

Account 692

Cost of Sales – Parts – Miscellaneous

$1,475

 

Account 492

Sales – Parts – Miscellaneous

 

$2,125

Account 252

Other Inventory

 

$1,475

Account 324

Sales Taxes Payable

 

$105

Note:

It is preferable that these sales be costed individually at actual cost, however, they may be costed on a percentage basis at month end.

 

If a percentage basis is used, an accurate percentage of sales should be developed to apply as cost for each classification of sales.

 

Using a reasonable sample, such as a three-month sales period, all sales in each classification should be costed at actual cost on each repair order and counter sales invoice.  A summary should be prepared of all sales and cost of sales included in this study.  Total sales in each classification should be divided into the corresponding total actual costs.  The resulting percentages should then be applied to the applicable sales classifications at each subsequent month end to determine cost of sales.

 

This study should be repeated as frequently as necessary.