716 Maintenance & Repairs (Closed End Lease)
726 Maintenance & Repairs (Open End Lease)
736 Maintenance & Repairs (Rental)
Lease & Rental Activity
Direct Cost
Cost of Sales Synopsis
Accounts 716, 726, and 736, Maintenance & Repairs for Closed End Lease, Open End Lease and Rental vehicles, respectively are established to record the cost of performing routine Maintenance and Repairs on Lease and Rental Vehicles.
Debits |
Credits |
|
|
Example 1
Record a $402 repair order for mechanical work performed on a rental unit. The internal labor sale is $160. The parts sale is $210. The sales tax is $12 and the shop supplies are $20. The cost of labor is $50. The parts cost is $158 and the shop supplies cost is $15.
Journal: Internal Sales
Entry: |
|
Debit |
Credit |
Account 736 |
Direct Cost – Maintenance & Repairs (Rental) |
$402 |
|
Account 663 |
Cost of Sales – Internal Labor – Mechanical |
$50 |
|
Account 669 |
Cost of Sales – Shop Supplies |
$15 |
|
Account 681 |
Cost of Sales – Parts - Internal |
$158 |
|
Account 242 |
Inventory – Parts & Accessories |
|
$158 |
Account 242 |
Inventory – Parts & Accessories |
|
$15 |
Account 247A |
Inventory – Work in Process – Mechanical |
|
$50 |
Account 324 |
Sales Taxes Payable |
|
$12 |
Account 463 |
Sales – Internal Labor - Mechanical |
|
$160 |
Account 469 |
Sales – Shop Supplies |
|
$20 |
Account 481 |
Sales – Parts – Internal |
|
$210 |
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.