Level 1

Reports and accounting

Are you using your WIP account to account for inventory + reconditioning? Or is your WIP account just reconditioning?

 

If you have 2 separate asset accounts (1 for reconditioning & 1 for Inventory): 

Credit "Inventory" asset account ---  $the principal cost of car

Debit "Cost of Vehicle" COGS expense account ---- $the principal cost of the car

Credit the "WIP Reconditioning" asset account --- $the reconditioning costs associated with that car

Debit your COGS Reconditioning account ---- $the reconditioning costs associated with that car