445 New Other Automotive

Sales

New Vehicle Department

Sales Synopsis

All New Other Automotive products, recorded in Account 238, Other Automotive (Inventory), sold at retail to end-users and other departments are recorded in this account.

Debits

Credits

Actual selling price of New Other Automotive items recorded in Account 238, Other Automotive sold to customers and other departments

645 New Other Automotive

Cost of Sales

New Vehicle Department

Cost of Sales Synopsis

The inventory values of New Other Automotive items sold are recorded as the Cost of Sales in this account.

Debits

Credits

Cost of new other automotive items recorded as sales in Account 445, New Other Automotive
Write-down of new items in Account 238, Other Automotive (Inventory) to market values

Example 1

Record a new motorcycle sale for the amount of $37,500, sales tax of $1,875 and Registration Fees of $80. The inventory value is $35,000.

Journal: New Other Automotive Sales

Entry:		Debit	Credit
Account 220C	Accounts Receivables – Customers – Other Automotive	$39,455
Account 645	Cost of Sales – New Other Automotive	$35,000
Account 445	Sales – New Other Automotive		$37,500
Account 238	Inventory – Other Automotive		$35,000
Account 324A	Sales Taxes Payable – Excise Taxes		$1,875
Account 910	Document Handling Fees		$80

Note:

This account is displayed on page 7, line 69 of the monthly Operating Report.

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.