448 Used Cars Wholesale

Sales

Used Vehicle Department

Sales Synopsis

This account is established to record the sale of Used Cars to other re-sellers such as other automobile dealers, used car lots, wholesalers and salvage yards.

Debits

Credits

 

  1. Selling price of Used Cars sold to other dealers for the purpose of resale

  2. Selling price of Used Cars sold at auctions

  3. Selling price of Used Cars sold to wholesalers

  4. Selling price of Used Cars sold to junk dealers

  5. Revenue from the scrapping of Used Cars

 

648 Used Cars Wholesale

Cost of Sales

Used Vehicle Department

Cost of Sales Synopsis

This account is established to record the Cost of Sales of Used Cars sold as wholesale units recorded in Account 448, Used Cars Wholesale.

Debits

Credits

  1. Inventory value, INCLUDING reconditioning, of Used Cars sold to customers for the purpose of resale

 

 

Example 1

Record a used car wholesaled in the amount of $5,000 with an inventory value of $5,000.

Journal: Used Car Sales

Entry:

 

Debit

Credit

Account 220A

Accounts Receivable – Customers – Vehicles

$5,000

 

Account 648

Cost of Sales – Used Cars Wholesale

$5,500

 

Account 448

Sales – Used Cars Wholesale

 

$5,000

Account 240

Inventory – Used Cars

 

$5,500

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.