400L - 418L New Cars - Fleet
Sales
New Vehicle Department
Sales Synopsis
The "L" Series is established for Fleet Sales of Cars and Trucks.
Debits |
Credits |
|
|
600L - 618L New Cars - Fleet
Cost of Sales
New Vehicle Department
Cost of Sales Synopsis
The inventory values of the New Fleet Cars, sold in the above account, are recorded in this Cost of Sale account.
Debits |
Credits |
|
|
Example 1
Record the sale of a new vehicle for the amount of $35,071 to a Fleet customer. The sales tax is $2,846 and the Documentation Fees are $325. The inventory value is $32,721.
Journal: New Car Sales
Entry: |
|
Debit |
Credit |
Account 220A |
Accounts Receivable – Customer – Vehicles |
$38,742 |
|
Account 600L |
Cost of Sales – New Cars – Fleet |
$32,721 |
|
Account 400L |
Sales – New Cars – Fleet |
|
$35,571 |
Account 231 |
New Car Inventory |
|
$32,721 |
Account 324A |
Sales Taxes Payable – Excise Taxes |
|
$2,846 |
Account 910 |
Document Handling Fees |
|
$325 |
Example 2
Record a fleet incentive of $500 due on the above new vehicle sale.
Journal: New Car Sales and General Journal
Entry: |
|
Debit |
Credit |
Account 261 |
Factory Receivables – Fleet Incentives |
$500 |
|
Account 6xxL |
Cost of Sales – New Cars – Fleet |
|
$500 |
Comments
The Fleet Sales for each respective Model should be recorded in the appropriate model account with "L" as the suffix, as indicated in the table below.
CARS |
||||||||||
Account |
(A) |
(B) |
(C) |
(D) |
(E) |
(G) |
(J) |
(L) |
(M) |
(K) |
400/418 600/618 |
Chevrolet ICE |
Chevrolet EV |
Buick ICE |
Buick EV |
Cadillac ICE |
Cadillac EV |
Other non-GM |
Fleet |
Govt |
SBC |
Note:
Incentives from GM offered as assistance for making Fleet Sales should be credited to Account 6xxL, New Cars - Fleet (Cost of Sales), which has the effect of reducing the cost of sale. The off-setting debit is recorded to Account 261, Factory Receivables.