510 Selling Price of Disposed Vehicles (Closed End Lease)

520 Selling Price of Disposed Vehicles (Open End Lease)

530 Selling Price of Disposed Vehicles (Rental)

Lease & Rental Activity

Direct Cost

Sales Synopsis

Accounts 510, 520, and 530, Selling Price of Disposed Vehicles for Closed End Lease, Open End Lease and Rental vehicles, respectively are established to record the Selling Price of Lease and Rental vehicles when they are retired from service.

710 Cost of Sale of Disposed Vehicles (Closed End Lease)

720 Cost of Sale of Disposed Vehicles (Open End Lease)

730 Cost of Sale of Disposed Vehicles (Rental)

Lease & Rental Activity

Direct Cost

Cost of Sales Synopsis

Accounts 710, 720, and 730, Cost of Sale of Disposed Vehicles for Closed End Lease, Open End Lease and Rental vehicles, respectively are established to record the Cost of Sales of Lease and Rental vehicles when they are retired from service.

Example 1

Record the $15,200 sale of a lease unit at the end of the lease. The cost of sale for the disposed vehicle is $15,200 and the accumulated depreciation is $8,800.  The original cost of the vehicle was $24,000.

Journal: Cash Receipts