16 – Demonstrator Expense

Vehicle Selling Expenses

Synopsis

Account 16

Debits

Credits

  1. The expense of operation and maintenance of new and used vehicles in demonstrator service.

  2. Losses due to physical damage to demonstrators.

  1. Adjustments to Demonstrator Expense account.

 

 

Remarks:

Labor and material used in maintaining and repairing demonstrators should be charged to this account on an internal repair order at the internal selling rate.

Typical charges to this account include such demonstrator related items as license, sales tax, and title fees gasoline and oil; washing; general maintenance and repairs; safety inspections (vehicle stickers); and losses resulting from accidents (uninsured portion).

Each item of this expense should be distributed to the New and Used Vehicle Departments, as applicable.