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

  1. Monthly writedown of used cars to appraised wholesale values

 

 

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