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. Write-down 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