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