302 – License and Registration Fees

Current Liabilities

Accounts & Notes Payable

Synopsis

Account 302

Debits

Credits

  1. Payments made to state motor vehicle agency for license, registration and title fees.

  1. License, registration, and title fees collected from customers.

 

Remarks:

This should be a scheduled account controlled by either the stock number or other identifying control number.

All amounts collected for license, registration and title fees must be paid to appropriate agencies in full and on dates specified by the laws of your state.

Most states do not allow income to be made in the collection and payment of these fees.  Fees collected in excess of that required by law should be refunded to the customer on a timely basis.

Documentation fees are legal in many states.  However, these fees are shown as a separate item on the sales contract.  Documentation fees should be credited to Account 803/804 – Documentation & Administration Fees New/Used Vehicles.

Note: