516 Administrative Fee (Closed End Lease)
526 Administrative Fee (Open End Lease)
536 Administrative Fee (Rental)
Lease & Rental Activity
Sales Synopsis
Accounts 516, 526, and 536, Administrative Fees for Closed End Leases, Open End Leases and Rental vehicles, respectively, are established to record the amount of Administrative Fees assessed on these vehicles.
Debits |
Credits |
|
|
Example 1
Record the $25 administrative fee charged for paying a $100 parking ticket for a Closed End Lease customer.
Journal: Cash Disbursements
Entry: |
|
Debit |
Credit |
Account 220C |
Accounts Receivable – Customers – Closed End Lease |
$125 |
|
Account 516 |
Administrative Fee – Closed End Lease |
|
$25 |
Account 202 |
Cash in Bank |
|
$100 |
Note:
Transactions, which are related, should be recorded in separate sub-accounts. Sub-accounts serve to keep records organized for future analysis and auditing. The sub- accounts in these examples are designated by a letter following the account number (suffix). Please refer to your DSP's instructions for establishing sub-accounts.