477B – Aftermarket Income

Used Vehicle Department

Sales Synopsis

Account 477B

Debits

Credits

 

  1. Adjustments to reduce the sale price, or reverse sales previously recorded in Aftermarket Sales.

677B – Aftermarket Income

Used Vehicle Department

Cost of Sales Synopsis

Account 677B

Debits

Credits

  1. Income generated from the sale of Aftermarket items on used vehicles.  Examples of these items are: Paint and fabric protections, Tire insurance, Anti-theft window etching, e.g., non-tangible items.

 

 

 

Remarks:

Income from Aftermarket items should be recorded at the time the vehicle sale is accounted for.  Credit the sale price of Aftermarket items to Account 477B and debit the cost of Aftermarket items to 677B.  Any subsequent adjustments due to cost variances should be adjusted to Account 677B.

Tangible devices, such as DVD players, should be a part of the cost of the vehicle and not recorded in aftermarket income.  This account should only be used for the net income earned on ‘non-tangible’ items as described above.

Note: