440 New Trucks - Fleet
Sales
New Vehicle Department
Sales Synopsis
New Trucks, which are sold to qualified Fleet customers, are recorded in this account.
Debits |
Credits |
|
|
640 New Trucks - Fleet
Cost of Sales
New Vehicle Department
Cost of Sales Synopsis
The inventory values of the New Trucks sold in the accounts above are recorded as the Cost of Sales in this account.
Debits |
Credits |
|
|
Example 1
Record a new truck sale for the amount of $40,651 to a fleet customer. The sales tax is $2,083 and the Registration Fees are $180. The inventory value is $40,151.
Journal: New Truck Sales
Entry: |
|
Debit |
Credit |
Account 220A |
Accounts Receivable – Customer – Vehicles |
$42,864 |
|
Account 640 |
Cost of Sales – New Trucks – Fleet |
$40,151 |
|
Account 440 |
Sales – New Trucks – Fleet |
|
$40,651 |
Account 237 |
New Trucks Inventory |
|
$40,151 |
Account 324A |
Sales Taxes Payable – Excise Taxes |
|
$2,033 |
Account 910 |
Document Handling Fees |
|
$180 |
Comments
The Fleet Sales for each respective Division should be recorded as indicated in the table below:
Account |
(A) |
(B) |
(C) |
(D) |
(E) |
(H) |
(J) |
440/640 |
Chevrolet |
Pontiac |
Oldsmobile |
Buick |
Cadillac |
Saturn |
Other Non-GM |
Note:
Incentives from GM offered as assistance for making Fleet Sales should be credited to Account 640, New Trucks - Fleet (Cost of Sales), which has the effect of reducing the cost of sale. The off-setting debit is recorded in Account 261, Factory Receivables.
Transactions, which are related, should be recorded in separate sub-accounts. Sub-accounts serve to keep records organized for future analysis and auditing. The sub-accounts in these examples are designated by a letter following the account number (suffix). Please refer to your DSP's instructions for establishing sub-accounts.