423-438N New Trucks - BrightDrop
Sales
New Vehicle Department
Sales Synopsis
The "N" series is established as a memo account only to "break-out" Sales of BrightDrop EV's.
Debits |
Credits |
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623-638N New Trucks - BrightDrop
Cost of Sales
New Vehicle Department
Cost of Sales Synopsis
The inventory values of the New BrightDrop EV's sold in the accounts above are recorded as the Cost of Sales in this account. These EV Trucks can be sold Retail/SBC, Fleet, or Government and have exclusive memo accounts for each sale.
Debits |
Credits |
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Example
Record a new BrightDrop Zevo 400 sale for the amount of $84,000 to an SBC entity. Sales tax is $5,880 and License Fees are $350. The inventory value is $81,800.
Journal: New Truck Sales
Entry: |
|
Debit |
Credit |
Account 220A |
Accounts Receivable - Customer - Vehicles |
$90,230 |
|
Account 623N |
Cost of Sales - New Zevo 400 - SBC |
$81,800 |
|
Account 423N |
Sales - New Zevo 400 - SBC |
|
$84,000 |
Account 237 |
New Trucks Inventory |
|
$81,800 |
Account 324A |
Sales Taxes Payable - Excise SBC |
|
$5,880 |
Account 215C |
License / Tag Fees Payable |
|
$350 |
Note:
On the Operating Report, the BrightDrop units will be included in the FLEET / COMMERCIAL / GOVT VEHICLE SALES SUMMARY at the bottom of the OR5 FLT COM page.
The Units will not appear on any of the "OR 5" pages of the Operating Report as BrightDrop will not have a page five. The units sold will be included in the NEW VEHICLE SLS SUMMARY at the bottom of Page 7.
Incentives from GM offered as assistance for making BrightDrop Sales should be credited to the associated Cost of Sales account, which has the effect of reducing the cost of sale. The off-setting debit is recorded in Account 261, Factory Receivables.