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    Hubertax05's Avatar
    Hubertax05 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Aug 10, 2009, 10:19 AM
    Book Purchase of new vehicle with Rebates & DP
    I need to know the correct journal entry for purchase of a new vehicle with mfg. rebates and a down payment. No trade-in. Help will be greatly appreciated.
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
    		  
    #2

    Aug 10, 2009, 10:57 AM
    The rebate is effectively just a reduction of the purchase price. Thus, the debit to the "Vehicles" asset account will be the sum of the down payment and the amount financed.
    Hubertax05's Avatar
    Hubertax05 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Aug 10, 2009, 12:35 PM
    Thank you very much. I thought that was probably the case, but wanted some confirmation.
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