238 Other Automotive

Assets

Inventories

Synopsis

Account 238 is established to record inventory of Other Automotive merchandise that cannot be classified as a Car, Truck or Medium Duty Truck.

Debits

Credits

  1. The factory invoice amount, less holdback and other non-related items such as supplemental advertising funds, of new other automotive items acquired

  2. The Internal selling price of dealer-installed accessories and optional equipment and the labour and materials required for installation

  3. The Destination, delivery and handling charges

  4. The lower of trade-in allowance or appraised wholesale value of used items accepted in trade on sales of new and used items

  5. The Cost of used items purchased

  6. The Traveling expenditures when acquiring these items

  7. The selling price of the labour and materials used in reconditioning

  8. The Auction fees on used items purchased

 

  1. The replacement value of accessories, optional equipment and tires removed from other automotive items and placed in Account 243, Tires (inventory) and Account 252, Other (inventory) as applicable

  2. The amount of subsequent factory price reductions

  3. Any required write down of new items to market value

  4. The monthly write down of used items to appraised wholesale values

  5. The Inventory value of items sold and otherwise disposed of

 

 

Comments

A debit balance represents the inventory value of other automotive items in inventory regularly stocked for resale. This should include all new and used self-propelled vehicles (other than motor homes) and other automotive-oriented merchandise such as:

 

a.   Aircraft

b.   Boats

c.   Camper bodies

d.   Farm tractors

e.   Golf carts

f.    Motorcycles

g.   Scooters

h.   Snowmobiles

i.    Special bodies

j.    Truck equipment and trainers

k.   Utility, house and camp trailers

Note:

A record of each unit in the vehicle inventories shown below should be made on a Vehicle Inventory Record at the time the unit is acquired.

Stock numbers should be assigned in numerical sequence to new, used and repossessed units acquired.  A used unit accepted in trade on the sale of a new unit should be given the same stock number as the new unit sold, but followed by the letter A.  A used unit accepted in trade on the sale of another used unit should be given the same stock number as the used unit sold, but followed by the letter B, etc.

Supporting month-end schedules should be prepared.  These schedules should be in agreement with the general ledger accounts and compared to physical inventories of the following:

·        Demonstrators

·        New Cars

·        New Trucks

·        Other Automotive

Supporting month-end schedules should be prepared.  These schedules should be in agreement with the general ledger accounts and compared to physical inventories of the following:

·        Used Cars

·        Used Trucks