Work in Process related accounts

Work in process is an inventory related to wage paid to technician
Description	Inventory	Sale	Cost of Sale
Service work order	Work in Process	customer labor sale	cost of sale - customer labor
body shop work order	Work in Process - Body shop	body shop labor sale	cost of sale - body shop labour
internal work order	Work in Process	Interior labor  sale	Cost of sale - Interior labor

Inventory related Accounts

Inventory	Cost of Goods Sold	Sale accounts/Income accounts	Account Receivable	Account Payable
Used Vehicle	Cost of sale –  Used vehicle	Sale - Used Vehicle	Note Receivable	Note Payable
Parts & accessories	Cost of sale - Parts & accessories	sale- Parts &accessories	Account Receivable	Account Payable - trade creditor
Gas & oil	Cost of sale - Gas & oil	sale - Gas & oil	Account Receivable	Account Payable - trade creditor
Work in progress	Cost of sale - Work in progress	Sale -  customer labor sale	x	x
Paint and body shop material	Cost of sale - Body shop material	Sale - Body shop material
Sublet Repair	Cost of sale - Sublet Repair	Sale - Sublet Repair	Account  Receivable	x

Car dealer accounting - sale

 A vehicle is purchased in the amount of 7000 which include 500 reconditioning cost and sold it for 9000 with the following data’s  

SALE	AMOUNT	COST	AMOUNT	PAYMENTS	AMOUNT
VEHICLE PRICE	$9000.00	VEHICLE COST	$  7000.00	DOWN PAYMENT	$ 1000.00
TAX	$  450.00	RECONDITIONING COST	$    500.00	TRADE IN VEHICLE	$ 2000.00
FEE	$   150.00	SALE COMMISSION	$    200.00
EXT SERVICE CONTACT	$   300.00
REVERSE	$   250.00

 

 ORGANIZING   SALE DATA’S  

 ACCOUNT RECEIVABLE = (VEHICLE PRICE + TAX + FEE + EXT SERVICE CONTACT) – (CASH + TRADE IN)

SALE	AMOUNT	COST	AMOUNT	CASH & RECON	AMOUNT
VEHICLE PRICE	$9000.00	VEHICLE COST	$7,000.00	DOWN PAYMENT	$1000.00
TAX	$450.00	RECONDITIONING COST	$500.00	ACCOUNT REC	$6900.00
FEE	$150.00	SALE COMMISSION	$200.00	TRADE IN	$2000.00
EXT SERVICE CONTACT	$300.00
TOTAL	$9900.00				$9900.00
REVERSE

                                                                  

ANALYZING OF SALE DATA’S

SALE	ACCOUNTS	AMOUNT	PAYMENTS	ACCOUNTS	AMOUNT
VEHICLE PRICE	SALE	$ 9,000.00	DOWN PAYMENT	CASH	$  1,000.00
TAX	TAX PAYABLE - ACCOUNT PAYABLE	$ 450.00	TRADE IN VEHICLE	TRADE IN VEHICLE	$  2,000.00
FEE	FEE PAYABLE - ACCOUNT PAYABLE	$ 150.00	ACCOUNT RECEIVABLE	ACCOUNT RECEIVABLE	$  6,900.00
EXT SERVICE CONTACT	EXT SERVICE CONTACT INCOME	$ 150.00
	EXT SERVICE CONTACT PAYABLE	$ 150.00
	TOTAL	$ 9,900.00			$ 9,900.00

SALE	ACCOUNTS	AMOUNT
VEHICLE PRICE	SALE	$ 9,000.00
TAX	TAX PAYABLE - ACCOUNT PAYABLE	$ 450.00
FEE	FEE PAYABLE - ACCOUNT PAYABLE	$ 150.00
EXT SERVICE CONTACT	EXT SERVICE CONTACT INCOME	$ 150.00
	EXT SERVICE CONTACT PAYABLE	$ 150.00
	TOTAL	$ 9,900.00

PAYMENTS	ACCOUNTS	AMOUNT
DOWN PAYMENT	CASH	$  1,000.00
TRADE IN VEHICLE	TRADE IN VEHICLE	$  2,000.00
ACCOUNT RECEIVABLE	ACCOUNT RECEIVABLE	$  6,900.00
		$ 9,900.00

REVERSE
FINANCE INCOME	$     125.00
REVERSE RECEIVABLE	$    125.00

COST	ACCOUNTS	DEBIT	CREDIT
VEHICLE COST	COST OF SALE - USED VEHICLE	$  7,000.00
RECONDITIONING COST	COST OF SALE - RECONDITIONING	$     500.00
	INVENTORY - USED VEHICLE		$7500
SALE COMMISSION	SALE COMMISSION EXPENSE	$     200.00
	SALE COMMISSION PAYABLE		$200
TOTAL		$7,700.00	$7,700

   RECORDING OF SALE 

ACCOUNT	DEBIT	CREDIT
CASH	$1000.00
CONTACT IN TRANSIT	$6900.00
TRADE IN	$2000.00
SALE TAX PAYABLE		$450.00
FEE PAYABLE		$150.00
EXT SV CONTACT PAYABLE		$150.00
EXT  SV CONTACT INCOME		$150.00
SALE		$9000.00
TOTAL	$9900.00	$ 9900.00

    

   COST OF SALE

ACCOUNT	DEBIT	CREDIT
COST OF SALE - USED VEHICLE	$7000.00
COST OF SALE - RECONDITIONING	$500.00
INVENTORY  - USED VEHICLE		$7500.00
TOTAL	$ 7500.00	$7500.00

    

   SALE COMMISSION

ACCOUNT	DEBIT	CREDIT
SALE COMMISSION EXPENSE	$200.00
SALE COMMISSION PAYABLE		$200.00

    

   REVERSE

ACCOUNT	DEBIT	CREDIT
FINANCE REVERSE RECEIVABLE	$125.00
FINANCE INCOME – USED VEHICLE		$125.00

   

ACCOUNT	DEBIT	CREDIT
CASH	$1000.00
CONTACT IN TRANSIT	$6900.00
TRADE IN	$2000.00
SALE TAX PAYABLE		$450.00
FEE PAYABLE		$150.00
EXT SV CONTACT PAYABLE		$150.00
EXT  SV CONTACT INCOME		$150.00
SALE		$9000.00
COST OF SALE - USED VEHICLE	$7000.00
COST OF SALE - RECONDITIONING	$500.00
INVENTORY  - USED VEHICLE		$7500.00
SALE COMMISSION EXPENSE	$200.00
SALE COMMISSION PAYABLE		$200.00
FINANCE REVERSE RECEIVABLE	$125.00
FINANCE INCOME – USED VEHICLE		$125.00
TOTAL	$17725	$17725