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

Internal selling price of new cars sold to other departments

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.

Debits

Credits

Cost of new cars sold to other departments

Example 1

Record the $16,921 sale of a new car to the Mechanical Department to be used as a loaner car for service customers. The inventory value is $16,721.

Journal: New Vehicle Sales

Entry:		Debit	Credit
Account 285	Company Vehicles	$16,921
Account 621	Cost of Sales – New Cars – Internal	$16,721
Account 231	New Car Inventory		$16,721
Account 421	Sales – New Cars – Internal		$16,921

Comments

The Internal Sales for each respective Division should be recorded as indicated in the table below:

Account	(A)	(B)	(C)	(D)	(E)	(H)	(J)
421/621	Chevrolet	Pontiac	Oldsmobile	Buick	Cadillac	Saturn	Other Non-GM

Internal sales of vehicles to other departments for permanent company service and for lease and rental service should be priced at cost plus $200.