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 write-down 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