450B Used Trucks Retail - Other

Sales

Used Vehicle Department

Sales Synopsis

This account is established to record the Retail sales of Other Used Trucks, which are not eligible for the GM Certified Used Truck program.

Debits

Credits

 

  1. The selling price of Other, non-GM Certified, Trucks

 

650B Used Trucks Retail - Other

Cost of Sales

Used Vehicle Department

Cost of Sales Synopsis

This account is established to record the inventory value of Other Used Trucks sold in Account 450B, Used Trucks Retail - Other, above.

Debits

Credits

  1. The inventory value, INCLUDING Reconditioning, of Other Used Trucks sold to Retail customers

 

 

Example 1

Record a Used Truck - Other sale in the amount of $22,283 with a finance contract reserve of $865, sales tax of $1,114 and Registration Fees of $180.  The inventory value is $21,083, of which $1,083 is due to Reconditioning.

Journal: Used Car Sales

Entry:

 

Debit

Credit

Account 205

Contracts in Transit

$23,577

 

Account 262

Due from Finance Companies

$865

 

Account 650B

Cost of Sales – Used Trucks Retail – Other

$21,083

 

Account 450B

Sales – Used Trucks Retail – Other

 

$22,283

Account 241

Inventory – Used Trucks

 

$21,083

Account 324A

Sales Taxes Payable – Excise Taxes

 

$1,114

Account 808

Finance Income – Used

 

$865

Account 910

Document Handling Fees

 

$180

Comments

Used Trucks, which do not qualify to be marketed as GM Certified, are to be recorded in these Sales and Cost of Sales accounts.  As Used Trucks are acquired, they should be placed in inventory by debiting Account 241, Used Trucks (Inventory) at the lower of cost or market.  The Used Vehicle manager should immediately prepare an Internal Repair Order to have the necessary Reconditioning performed.  The cost of the Reconditioning work is also debited to Account 241, Used Trucks (Inventory).  When Used Trucks are sold at retail to end users, the sale and cost of sale respectively are posted to Account 450B, Used Trucks Retail - Other (Sales) and Account 650B, Used Trucks Retail – Other (Cost of Sales).