543 GM Protection Plans (Sales)

Lease & Rental Activity

F & I, Protection Plan Activity

Sales Synopsis

Account 543 is established to record the Sales of GM Protection Plans on Lease and Rental Vehicles.

Debits

Credits

 

  1. The selling price of GM Protection Plans sold on Lease and Rental vehicles

 

743 GM Protection Plans (Cost of Sales)

Lease & Rental Activity

F & I, Protection Plan Activity

Cost of Sales Synopsis

Account 743 is established to record the Cost of Sales of GM Protection Plans on Lease and Rental Vehicles.

Debits

Credits

  1. The Cost of Sales of GM Protection Plans sold on Lease and Rental vehicles

 

 

Example 1

Record the sale made by the Lease & Rental Department of a lease vehicle, which includes a GM Protection Plan for $1,500 to a customer (who was the original lessee). The lease unit is sold for $24,200, and the sales tax is $1,200.  The cost of the GM Protection Plan is $950 and the cost of sale of the unit is $24,000.

Journal: New Car Sales

Entry:

 

Debit

Credit

Account 277

Lease & Rental Vehicles

$24,200

 

Account 621

Cost of Sales – New Cars – Internal

$24,000

 

Account 714

Direct Cost – License, Title & Tax

$1,200

 

Account 220C

Accounts Receivable – Customers – Closed End Lease

$1,500

 

Account 743

Cost of Sales – GM Protection Plans – Lease & Rental Activity

$950

 

Account 231

Inventory – New Cars

 

$24,000

Account 421

Sales – New Cars – Internal

 

$24,200

Account 543

Sales – GM Protection Plans – Lease & Rental Activity

 

$1,500

Account 300

Accounts Payable – Trade Creditors

 

$950

Account 324A

Sales Taxes Payable – Excise Taxes

 

$1,200

 

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.