317 – Notes Payable – Used Vehicles

Current Liabilities

Accounts & Notes Payable

Synopsis

Account 317

Debits

Credits

  1. Payments of notes on Used Vehicles, both Subaru and Other makes.

 

  1. The principal amounts due finance institutions on short-term notes secured by used cars and trucks.

  2. Any remaining finance liability on vehicles removed from lease, rental or driver education service.

 

Remarks:

A detailed record of the unpaid amount due on each used vehicle should be maintained on a vehicle inventory record.

The monthly finance company statement  should be carefully reconciled to the retailer's records to determine if all payments have been promptly recorded, that payment for all cars and trucks sold have been made, and that no notes have been added in error by the finance company.

Any variances should be located, their source determined, and proper disposition made before the Subaru Dealer Financial Statement is prepared.

Note: