452 Used Trucks - Wholesale

Sales

Used Vehicle Department

Sales Synopsis

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

Debits

Credits

 

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

  2. Selling price of Used Trucks sold at auctions

  3. Selling price of Used Trucks sold to wholesalers

  4. Selling price of Used Trucks sold to junk dealers

  5. Revenue from the scrapping of Used Trucks

 

652 Used Trucks - Wholesale

Cost of Sales

Used Vehicle Department

Cost of Sales Synopsis

This account is established to record the Cost of Sales of Used Trucks sold as wholesale units recorded in Account 452, Used Trucks - Wholesale.

Debits

Credits

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

 

 

Example 1

Record a used truck wholesaled in the amount of $12,000 with an inventory value of $11,500.

Journal: Used Car Sales

Entry:

 

Debit

Credit

Account 220A

Accounts Receivable – Customers – Vehicles

$12,000

 

Account 652

Cost of Sales – Used Trucks – Wholesale

$11,500

 

Account 452

Sales – Used Trucks – Wholesale

 

$12,000

Account 241

Inventory – Used Trucks

 

$11,500