535 Rental Income (Rental)
Lease & Rental Activity
Sales Synopsis
Account 535, Rental Income is established to record the receipts produced from the rental of vehicles to customers.
Debits |
Credits |
|
|
Example 1
Record a cash sale of $37 for the $35 daily rental of a vehicle to a service customer and sales tax of $2.
Journal: Rental Sales
Entry: |
|
Debit |
Credit |
Account 225 |
Cash Sales |
$37 |
|
Account 535 |
Rental Income |
|
$35 |
Account 324 |
Sales Taxes Payable |
|
$2 |
Comments
Professional tax, accounting and insurance advice should be obtained regarding the establishment of a dealership owned rent a car operation. Care must be taken to make sure that adequate and proper insurance coverage is in effect on all vehicles rented to customers.