HVAC component repair (major component of the unit that affects functionality)
Re-roofing of the dealership facility
I-Phones (bulk purchase of 4 at $595 each)
Special model-year tools for the shop
The Internal Book is the only book that needs to be reviewed for accuracy and completeness against the current Depreciation Guidelines because it is what gets used for posting in the general ledger.
All books (Internal, Tax, AMT, State (when applicable) and State AMT (when applicable)) are equally important and must all receive thorough review.
Estimated useful lives are always consistent between the Internal Book and the Tax Book in FAS.
Regarding depreciation methods, MF200 is the same as MA200 so it doesn’t matter which one you pick when you set up a new asset.
Contracts-in-Transit or Vehicle Receivables, depending on the nature of the deposit
In a separate general ledger account that appropriately relates to a current liability line on the financial statement
Combined in Accounts Payable, set up under separate control numbers
Prepaid vehicles, as a credit
Posting of the credits as received from the manufacturer
Corresponding with the factory for collection of any differences between claims submitted and claims paid
Warranty schedule review and journal entry voucher preparation for any differences between claims submitted and claims paid
Posting of any necessary journal entries to write off rejected claims
Both a and d above are not appropriate duties for the warranty administrator
Dependent on customer satisfaction
Tied to facility compliance
Solely tied to hitting vehicle volume targets
Dependent on other non-volume performance-related items
The receivable should not be reserved as a bad debt as of July month-end because it has not yet reached the 90-day aging guideline.
The receivable should be partially reserved as of July month-end.
The receivable should be reserved in total as of July month-end.
We should always record new vehicles into inventory as they physically arrive at the dealership, so the stock-in date should always match the bill of lading.
We should always record new vehicles into inventory 10 days in advance of the invoice date, as this is an acceptable estimation of when the vehicle will leave the manufacturer in an FOB shipping point situation.
We should record new vehicles into inventory when ownership transfers to the dealership, which may differ by manufacturer.
Record the transportation cost to the inventory cost of the incoming vehicle; record the pinstriping cost difference to delivery expense.
Record both items to delivery expense.
Record both items as additions to the inventory cost of the incoming vehicle.
Chrome wheels installed on a showroom unit that never leave the showroom must be added to the cost of the vehicle on which they were installed.
Chrome wheels installed on a vehicle inventory unit while in inventory must always be added to the vehicle cost.
Chrome wheels installed and driven around off the dealership premises on a demo vehicle must be added to the cost of the vehicle on which they were installed.
Removable accessories (i.e. bike racks)
None of the above would be appropriate additions to vehicle cost
Customer name must match between the RDR and the car deal
The vehicle must have been delivered to the customer
The date of the RDR must be within the same month the vehicle was sold
All of the above must be confirmed prior to RDR submission
Limits may not be imposed on how much a customer can charge
Credit card payments on vehicle purchases must be disclosed on the sales contract if the contract allows for such disclosure
The credit card does not need to be presented and swiped, phone-in credit card information is acceptable
Fees associated with credit card transactions on vehicle purchases may not be charged to the customer and must instead be recorded to cost of sales as the car deal is posted.
Selling dealerships have until a used vehicle is 90 days aged to determine whether it will be sold to another Kuni dealership and to complete the sale.
Intercompany vehicle sales must be valued at MMR (Manheim Market Report) value, as obtained using V-Auto, at the selling dealership’s location.
A printout supporting the V-Auto MMR value must be attached to the buyer’s order and must be maintained in both the deal jacket of the selling dealership and the inventory jacket of the purchasing dealership.
For accounting purposes, the transaction is considered a sale on the date indicated on the buyer's order which is signed and dated by both dealerships.
The part should be added into parts inventory at the actual price of $210, regardless of the factory cost
The part should be added into parts inventory at $200 (the factory cost), with the additional $10 being recorded to the Parts Inventory Adjustment account
Either way is fine, there is no consequential effect