441 New Trucks - Internal
Sales
New Vehicle Department
Sales Synopsis
New Trucks, which are sold to other departments within the dealership, are recorded in this account. For example, a pickup truck might be sold to the Parts Department as a delivery vehicle.
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Debits |
Credits |
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641 New Trucks - Internal
Cost of Sales
New Vehicle Department
Cost of Sales Synopsis
The inventory values of the Trucks sold above are recorded as the Cost of Sale in this account.
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Debits |
Credits |
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Example 1
Record the $30,841 sale of a truck to the Parts & Accessories Department to be used for deliveries. The inventory value is $30,641.
Journal: New Vehicle Sales
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Entry: |
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Debit |
Credit |
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Account 285 |
Company Vehicles |
$30,841 |
|
|
Account 641 |
Cost of Sales – New Trucks – Internal |
$30,641 |
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Account 441 |
Sales – New Trucks – Internal |
|
$30,841 |
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Account 237 |
New Truck Inventory |
|
$30,641 |
Comments
The Internal Sales for each respective Division should be recorded as indicated in the table below:
|
Account |
(A) |
(B) |
(C) |
(D) |
(E) |
(F) |
(G) |
(H) |
|
441/641 |
Chevrolet |
Pontiac |
Oldsmobile |
Buick |
Cadillac |
GMC Truck |
Hummer |
Saturn |
Internal sales of vehicles to other departments for permanent company service and for lease and rental service should be priced at cost plus $200.