653 Adjustment – Used Truck Inventory

Cost of Sales

Used Vehicle Department

Cost of Sales Synopsis

Account 653, Adjustment – Used Truck 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 Trucks to appraised wholesale values

 

 

Example 1

Record the $200 write-down of a used truck in inventory.

Journal: General Journal

Entry:

 

Debit

Credit

Account 653

Adjustment – Used Truck Inventory

$200

 

Account 241

Inventory – Used Trucks

 

$200