634 – Adjustment Used Vehicle Inventory

Used Vehicle Department

Cost of Sales Synopsis

Account 634

Debits

Credits

  1. Write-down of used cars inventory to current estimated wholesale value.

 

 

 

Remarks:

This account is used to reflect re-valuation of used vehicle inventory due to depreciation.

Aged vehicles, usually over 60 days, should be reviewed for depreciation and adjusted to accurately reflect assets on the balance sheet.

Each used vehicle in inventory should be reviewed to ensure proper valuation.  A vehicle’s adjusted value should be recorded on the appropriate vehicle inventory record.

Note: