October 30, 2016 admin

Commissions & Incentives—Sales Managers—New

Expenses

COMMISSIONS & INCENTIVES—SALES MANAGERS—NEW EXPENSE ACCOUNT
7010

ACCOUNT EXPLANATION
Commissions and incentives paid or accrued to sales managers on the sale of new cars, trucks, options, accessories, truck bodies and equipment, finance contracts and insurance. Includes incentives based on the performance of the new vehicle department.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Commissions earned by sales managers on new car sales PR
    Commissions & Incentives—Sales Managers—New 7010
      Accrued Payroll 2410
             
  Prizes earned by sales managers on new truck sales PR
    Commissions & Incentives—Sales Managers—New 7010
      Accrued Payroll 2410
COMMENTS
  • Commissions, incentives, prizes, etc., paid to employees are subject to withholding and should be recorded through the payroll journal. Tax counsel should be consulted as necessary.
  • Salaries of supervisors of new car salespeople should be charged to Account 7080, Salaries—Sales Managers—New.
  • Bonuses of new vehicle sales managers based on total dealership profit should be charged to Account 9550, Employee Bonuses.
  • If the new car and new truck activities are organized as separate departments, charges to this account should be distributed directly to the departments generating the expense. See Departmentalization for further information.