649 Adjustment – Used Car Inventory
Cost of Sales
Used Vehicle Department
Cost of Sales Synopsis
Account 649, Adjustment – Used Car Inventory is established to record the amount required to bring the inventory in line with current market values.
Debits |
Credits |
|
|
Example 1
Record the $550 write-down of a used car that has been in inventory over 180 days.
Journal: General Journal
Entry: |
|
Debit |
Credit |
Account 649 |
Adjustment – Used Car Inventory |
$550 |
|
Account 240 |
Inventory – Used Cars |
|
$550 |