224 -  Intercompany Receivables - Short Term

Current Assets

Receivables

Synopsis

Account 224

Debits

Credits

  1. Amount due from other dealerships in the dealer group that the Subaru dealerships purchases goods and services on behalf of.  Use this account if the debts are paid off monthly by related dealerships, e.g., exchange of funds occurs on a monthly basis between stores.

  1. Payments from other dealerships, or credits for returned or refunded/adjusted items.

 

 

Remarks:

·         As in all Accounts Receivable accounts, it is necessary to maintain a detailed schedule.  This schedule should include:

o    Vehicle invoice Date

o    Description of goods or services purchased on behalf of other retailer(s)

·         All outstanding items after the payment period should be promptly followed up to determine action necessary to clear the receivable.

Note: