230B - Demonstrators - Other

Current Assets

New Vehicles

Synopsis

Account 230B

Debits

Credits

  1. Inventory value of new non-Subaru vehicles placed in demonstrator service including all dealer installed accessories and equipment.

  1. Inventory value of non-Subaru demonstrators sold or removed from demonstrator service.

  2. Cost of accessories or equipment removed from a non-Subaru demonstrator.

 

 

Remarks:

When a vehicle is placed into demonstrator service, the transaction should be handled as an inventory transfer; it should not be recorded as a new car sale until the vehicle is sold to the ultimate consumer.

 

Physical inventory of demonstrators should be taken periodically, and always at month-end, and reconciled to the balance of this account.

 

A subsidiary vehicle inventory record should be maintained for each vehicle in demonstrator service and maintained in a file separately from those vehicles in the new car inventory.

 

The registration, titling, and licensing of demonstrators should be handled in compliance with respective state laws and charged to in Demonstrator Expense (Account 16).

Note: