456 Used Other Automotive
Sales
Used Vehicle Department
Sales Synopsis
Account 456, Used Other Automotive is established to record the sale of Used Other Automotive inventory maintained in Account 238, Other Automotive (Inventory) sold at retail to end users and other departments.
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656 Used Other Automotive
Cost of Sales
Used Vehicle Department
Cost of Sales Synopsis
The purpose of this account is to record the Cost of Sales of items sold in Account 456, Used Other Automotive, above.
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Example 1
Record the sale of a used motorcycle in the amount of $25,000 with sales tax of $1,250 and Registration Fees of $80. The inventory value is $23,500.
Journal: Used Other Automotive Sales
Entry: |
|
Debit |
Credit |
Account 201 |
Cash on Hand |
$26,330 |
|
Account 656 |
Cost of Sales – Used Other Automotive |
$23,500 |
|
Account 456 |
Sales – Used Other Automotive |
|
$25,000 |
Account 238 |
Inventory – Other Automotive |
|
$23,500 |
Account 324A |
Sales Taxes Payable – Excise Taxes |
|
$1,250 |
Account 910 |
Document Handling Fees |
|
$80 |