675A – Subaru – Adjustment Parts & Accessories Inventory

Parts And Accessories Department

Cost of Sales Synopsis

Account 675A

Debits

Credits

  1. The monthly provision for anticipated inventory losses and obsolescence.

  2. The adjustment required to decrease the book value to agree with the physical inventory value.

 

  1. The amount of any decrease in previously recorded provisions for anticipated inventory adjustments.

  2. The adjustment required to increase the book value to agree with the physical inventory value.

 

 

Remarks:

The balance in this account represents the accumulated provision for Subaru parts and accessories inventory losses due to shrinkage and obsolescence.  This balance should be adjusted at year-end to reflect actual shrinkage and obsolescence as disclosed by physical inventory.

Since special treatment of this account may be required for income tax purposes, dealers should consult tax counsel.