474B – Other Mechanical/Maintenance Contracts

Used Vehicle Department

Sales Synopsis

Account 474B

Debits

Credits

 

  1. Income generated from the sale of Other Mechanical/Maintenance to used vehicle customers.

674B – Other Mechanical/Maintenance Contracts

Used Vehicle Department

Cost of Sales Synopsis

Account 674B

Debits

Credits

  1. Adjustments to reduce the amount of income from Other Mechanical/Maintenance contracts other than Subaru Service Contracts.  Use Account 476B - Used Charge Backs & Repo Losses to record charge backs due to cancellation of service contracts.

 

 

 

Remarks:

Income from service contract sales 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 sale amount of the contract to Account 474B, and debit the cost to 674B.  Adjust differences to 674B if there is a discrepancy.

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

Note: