675B – Other – Adjustment Parts & Accessories Inventory

Parts And Accessories Department

Cost of Sales Synopsis

Account 675B

Debits

Credits

  1. The monthly provision for anticipated inventory losses and obsolescence of Other make parts and accessories.

  2. The adjustment required to decrease the book value to agree with the physical inventory value of Other make parts and accessories.

  1. The amount of any decrease in the total provision for Other make parts and accessories inventory.

  2. The adjustment required to increase the book value to agree with the physical inventory value of Other make parts and accessories inventory.

 

 

Remarks:

The balance in this account represents the accumulated provision for other 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.