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 $35,571 with an accessory sale of $1,450.  The finance contract reserve is $1,300, sales tax is $2,988, and Documentation Fees are $325.  The inventory value of the vehicle is $32,721.

Journal: New Vehicle Sales

Entry:

 

Debit

Credit

Account 205

Contracts in Transit

$40,334

 

Account 262

Due from Finance Companies

$1,300

 

Account 600-618

Cost of Sales – New Cars – Retail

$31,671

 

Account 657

Cost of Sales – Accessories

$1,450

 

Account 400-418

Sales – New Cars – Retail

 

$35,571

Account 457

Sales – Accessories

 

$1,450

Account 231

New Car Inventory

 

$32,721

Account 324A

Sales Taxes Payable – Excise Taxes

 

$2,988

Account 806

Finance Income – New

 

$1,300

Account 910

Document Handling Fees

 

$325

.