473A – SAS Mechanical Service Contracts

New Subaru Department

Sales Synopsis

Account 473A

Debits

Credits

 

 

  1. The sale of SAS Mechanical service contracts to new vehicle customers.

673A – SAS Mechanical Service Contracts

New Subaru Department

Cost of Sales Synopsis

Account 673A

Debits

Credits

  1. Adjustments to reduce the amount of income from SAS Mechanical service contracts.  Use Account 476A – Charge Backs & Repo Losses to record charge backs due to cancellation of service contracts.

 

 

 

Remarks:

Service contract sale prices should be determined at the time the deal is finalized.  This allows service contract income to be recorded along with the vehicle sale.  Credit the sales price to Account 473A and debit the cost of the service contract to 673A.   Any discrepancies between anticipated income amount and actual amount earned from Subaru Service Contracts should be adjusted against Account 673A.

Charge backs on service contract income from early terminations or cancellations should be charged to Account 476A – Charge Backs & Repo Losses.

Note: