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.

Debits

Credits

Actual selling price of Used Other Automotive items recorded in Account 238, Other Automotive sold to customers and other departments

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.

Debits

Credits

Cost of Used Other Automotive items recorded as sales in Account 456, Used Other Automotive
Monthly writedown of used items in Account 238, Other Automotive (Inventory) to current wholesale values

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

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.