718 Other (Closed End Lease)
728 Other (Open End Lease)
738 Other (Rental)
Lease & Rental Activity
Direct Cost
Cost of Sales Synopsis
Accounts 718, 728, and 738, Other Direct Costs for Closed End Lease, Open End Lease and Rental vehicles, respectively are established to record the cost of miscellaneous Direct Costs, which cannot be properly classified in any other account, related to operating Lease and Rental vehicles.
Debits |
Credits |
a. Gasoline b. Collection fees for late payments
|
|
Example 1
Record the monthly expense of gasoline on rental units in the amount of $3,987.
Journal: Cash Disbursements and Purchases
Entry: |
|
Debit |
Credit |
Account 738 |
Direct Cost – Other (Rental) |
$3,987 |
|
Account 300 |
Accounts Payable – Trade Creditors |
|
$3,987 |