450A Used Trucks Retail - Certified/CarBravo

Sales

Used Vehicle Department

Sales Synopsis

This account is established to record the sale of GM Certified or CarBravo Used Trucks sold at retail to end-users.  (Certified Trucks for Other manufacturers are recorded in Account 450B, Used Trucks Retail - Other)

Debits

Credits

 

  1. Selling price of GM Certified Used Trucks sold to retail customers

 

650A Used Trucks Retail - Certified/CarBravo

Cost of Sales

Used Vehicle Department

Cost of Sales Synopsis

This account is established to record the Cost of Sales for vehicles sold in the account above (Account 450A, Used Trucks Retail - Certified/CarBravo)

Debits

Credits

  1. Inventory value, INCLUDING reconditioning, of GM Certified Used Trucks sold to retail customers

  1. Credits received from the factory for sales to General Motors’ employees under the General Motors Employee Purchase Plan

 

Example 1

Record a CarBravo Used Truck sale in the amount of $23,386 paid partly with a finance contract of $16,735 and an $8,000 used truck traded-in.  The finance contract reserve is $453, sales tax is $1,169 and Document Handling Fees are $180.  The inventory value of the used truck sold is $21,986 of which $786 is for Reconditioning.

Journal: Used Car Sales

Entry:

 

Debit

Credit

Account 205

Contracts in Transit

$16,735

 

Account 262

Due from Finance Companies

$453

 

Account 650A

Cost of Sales – Used Trucks Retail – Certified

$21,986

 

Account 241

Inventory – Used Trucks

$8,000

 

Account 450A

Sales – Used Trucks Retail – Certified

 

$23,386

Account 241

Inventory – Used Trucks

 

$21,986

Account 324A

Sales Taxes Payable – Excise Taxes

 

$1,169

Account 808

Finance Income – Used

 

$453

Account 910

Document Handling Fees

 

$180

Comments

As Used Trucks are acquired, a timely determination must be made as to whether the Used Truck is eligible to be sold under the GM Certified or CarBravo programs.  If the vehicle is eligible, then it must be reconditioned according to program rules and promptly Certified.  When the Certified Used Car is sold at retail, the sale and cost of sales are recorded in these accounts.