741 Insurance Chargebacks

Lease & Rental Activity

F & I, Protection Plan Activity

Cost of Sales Synopsis

Account 741, Insurance Chargebacks is established to record the amount of Chargebacks levied against the dealership for early termination by customers of Insurance policies on Lease and Rental vehicles.

Example 1

Record the $539 payment of the chargeback for the early cancellation of an insurance policy on a lease customer.

Journal: Cash Disbursements and Purchase