688 Adjustment – Parts and Accessories Inventory
Cost of Sales
Fixed Operations
Cost of Sales Synopsis
Account 688 is established to record the amount of adjustment required to reconcile the value of inventory on hand recorded in Account 242, Parts & Accessories (Inventory).
Debits |
Credits |
|
|
Example 1
Record $985 of appreciation in parts value due to increase in parts pricing from the manufacturer.
Journal: General Journal
Entry: |
|
Debit |
Credit |
Account 242 |
Inventory – Parts & Accessories |
$985 |
|
Account 688 |
Adjustments – Parts & Accessories Inventory |
|
$985 |
Example 2
Record the $6,437 adjustment to bring book balance of Parts & Accessories Inventory in agreement with the physical inventory balance.
Journal: General Journal
Entry: |
|
Debit |
Credit |
Account 242 |
Inventory – Parts & Accessories |
$6,437 |
|
Account 688 |
Adjustments – Parts & Accessories Inventory |
|
$6,437 |
Example 3
Record the $1,449 cost of parts scrapped.
Journal: Internal Sales
Entry: |
|
Debit |
Credit |
Account 688 |
Adjustment – Parts & Accessories Inventory |
$1,449 |
|
Account 242 |
Inventory – Parts & Accessories |
|
$1,449 |