421 New Cars - Internal
Sales
New Vehicle Department
Sales Synopsis
New Cars, which are sold to other departments within the dealership, are recorded in this account. For example, a car might be sold to the Mechanical Department as a courtesy vehicle.
Debits |
Credits |
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621 New Cars - Internal
Cost of Sales
New Vehicle Department
Cost of Sales Synopsis
The inventory values of Cars sold above is recorded as the Cost of Sales in this account.
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Credits |
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Example 1
Record the $32,921 sale of a new car to the Mechanical Department to be used as a loaner car for service customers. The inventory value is $32,721.
Journal: New Vehicle Sales
Entry: |
|
Debit |
Credit |
Account 285 |
Company Vehicles |
$32,921 |
|
Account 621 |
Cost of Sales – New Cars – Internal |
$32,721 |
|
Account 231 |
New Car Inventory |
|
$32,721 |
Account 421 |
Sales – New Cars – Internal |
|
$32,921 |
Comments
Internal sales of vehicles to other departments for permanent company service and for lease and rental service should be priced at cost plus $200.