490B – Gas, Oil, & Grease Other Makes

Parts And Accessories Department

Sales Synopsis

Account 490B

Debits

Credits

 

  1. The actual selling price of all gas, oil, grease, and other similar fluids sold, such as brake fluid, antifreeze, windshield washer fluid, and solvents per the Debit description.

690B – Gas, Oil, & Grease Other Makes

Parts And Accessories Department

Cost of Sales Synopsis

Account 690B

Debits

Credits

  1. The cost of all gas, oil, grease, and other similar fluids sold on repair orders for Other Makes, such as brake fluid, antifreeze, windshield washer fluid, and solvents.  This Account is only to be used by Retailers who sell/report New Other Makes on their Financial Statement.

  2. The adjustment required when the physical inventory is less/more than the account (book) balance.

 

 

Remarks:

Gas, oil, and grease (lubricants) should be costed in accordance with the latest cost prices available, at the lower of cost or market value.

 

Liquid and bulk inventory is high risk.  Strict controls and monthly inventory checks and adjustments should standard procedure.  Shortages resulting from lack of controls or proper costing procedures can then be recognized and corrected on a timely basis.   Adequate internal controls, using written authorizations, should be maintained in dispensing these materials

 

Costing methods and prices should be reviewed periodically for accuracy. Unless costing of materials is accurate, sizeable inventory adjustments will be necessary at month-end.