AM 3630- Dealership Accounting- Service Transactions Exercises. Assignment and Study Material are attached.

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AM 3630 - Dealership Accounting Service Transactions Exercises 1. Post the following transactions using the general journal: RO# 5116, A customer purchases a new truck from the dealership. The sales agreement includes tinting the windows (line 1), installing a bed liner (line 2), and installing a heavy duty rear bumper (line 3). The Service department charges the vehicles sales department $150 for the window tinting, which is done by USA Window tinting at a cost of $135.00. The price of the bed liner is $185 and it costs $155.00. The price of the bumper is $150.00 and it costs $125.00. The internal labor rate is $60.00 per hour. The bed liner takes 0.3 hours to install and the bumper takes 0.4 hours. Technicians are paid $20.00 per hour. RO# 5117, BMW West, a local import dealership (Customer 103) gets A/C repair work done on their Parts truck. The parts wholesale price is $48.00, the cost is $43.00, and they are eligible for a wholesale compensation incentive of $7.00 (posted at the time of the transaction). Labor rate for the Service Department is $60 per hour. The job takes 1.0 hour and technicians are paid $20.00 per hour. RO# 5118, A retail customer enters the dealership to redeem a coupon she received for a free oil change when she purchased her new vehicle. The normal price for an oil change is $40.00 total. Oil is sold for $8.00 and costs $4.00. The oil filter price is $4.00 and it costs $2.00. The technician is paid a flat $7.00 per oil change. Tax is charged at 5.00%, even though the customer does not pay it with the coupon. (Hint: The new vehicle free service/maintenance account is 7050). Service Transaction Exercises 1. 4/20/2014 RO # 5116 Line 1 2 3 5117 5118 Account # Account Name Debit Credit