457 Accessories

Sales

New Vehicle Department

Sales Synopsis

This account is established to record the sales of dealer installed Accessories sold by the New Vehicle Department.

Debits

Credits

 

  1. The sales amount of Accessories sold through the New Vehicle Department

 

657 Accessories

Cost of Sales

New Vehicle Department

Cost of Sales Synopsis

The inventory value of dealer installed Accessories sold in the account above is recorded as the Cost of Sales in this account.

Debits

Credits

  1. The cost of Accessories sold in Account 457, Accessories (Sales)

 

 

Example 1

Record a new vehicle sale for the amount of $17,571 with an accessory sale of $450.  The finance contract reserve is $300, sales tax is $901 and Registration Fees are $125.  The inventory value of the vehicle is $16,971, which includes a $250 cost for the accessory.

Journal: New Vehicle Sales

Entry:

 

Debit

Credit

Account 205

Contracts in Transit

$19,047

 

Account 262

Due from Finance Companies

$300

 

Account 600-618

Cost of Sales – New Cars – Retail

$16,721

 

Account 657

Cost of Sales – Accessories

$250

 

Account 400-418

Sales – New Cars – Retail

 

$17,571

Account 457

Sales – Accessories

 

$450

Account 231

New Car Inventory

 

$16,971

Account 324A

Sales Taxes Payable – Excise Taxes

 

$901

Account 806

Finance Income – New

 

$300

Account 910

Document Handling Fees

 

$125

Note:

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.