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

 

  1. Actual selling price of new cars sold to fleet customers

 


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

  1. Cost of new cars sold to fleet customers

 

  1. Fleet incentive 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.