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

 

  1. The amount of Administrative Fees assessed to or collected from Lease and Rental Customers

 

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.