854 Repossession Losses-Used

Finance & Insurance Activity

Used Vehicle

Cost of Sales Synopsis

Account 854 is established to record losses due to repossession of Used Vehicles.

Debits

Credits

  1. Excess of the amount due over the appraised wholesale value of repossessed vehicles, whether the vehicles are secured by notes held by the dealership or by notes discounted with finance institutions

  2. Losses on repossessed vehicles sold by finance institutions

  3. Repossession surpluses due customers

 

  1. Deficiency settlements on repossessed vehicles

Comments

A debit balance represents repossession losses on previous used vehicle sales