490 Tires

Sales

Fixed Operations

Sales Synopsis

Account 490 is established to record the sales of Tires by the Parts and Accessories Department.

Debits

Credits

 

  1. Actual selling price of tires sold to customers other than with new vehicles

  2. Actual selling price (at claim rate) of tires for which Warranty and Transportation Claims are filed

  3. Internal selling price of tires sold to other departments

 

690 Tires

Cost of Sales

Fixed Operations

Cost of Sales Synopsis

Account 690 is established to record the Cost of Sales of Tires sold in Account 490 above.

Debits

Credits

  1. Cost of tires sold

  2. Adjustment to decrease the value of Account 243, Tires (inventory)

 

  1. Adjustment to increase the value of Account 243, Tires (inventory)

 

Note:

These sales may be costed individually at actual cost.  However, at each month end, inventory adjustments to physical count values should be reflected in the applicable cost of sales accounts.

 

Internal sales of regularly stocked tires should be priced at cost plus 25%, but not to exceed the retail selling price item.

 

If it is determined that there is little or no additional cost involved in handling non-regularly stocked tires, such internal sales may be priced at a rate lower than cost plus 25%, if desired.