717 Rent-Sublet Units (Closed End Lease)

727 Rent-Sublet Units (Closed End Lease)

737 Rent-Sublet Units (Rental)

Lease & Rental Activity

Direct Cost

Cost of Sales Synopsis

Accounts 717, 727, and 737, Rent-Sublet Units for Closed End Lease, Open End Lease and Rental vehicles, respectively are established to record the cost of Renting or Subletting Units to provide to Lease and Rental customers.

Debits

Credits

  1. The cost of rental or sublet arrangements in order to provide vehicles for Lease and Rental customers

 

 

Example 1

Record the cost of $37 for renting a vehicle for lease customer while their car is being serviced.

Journal: Cash Disbursements and Purchase

Entry:

 

Debit

Credit

Account 717

Direct Cost – Rent – Sublet Units (Closed End Lease)

$37

 

Account 300

Accounts Payable – Trade Creditors

 

$37