October 30, 2016 admin

Salaries—Salespeople—New

Expenses

SALARIES—SALESPEOPLE—NEW EXPENSE ACCOUNT
7070

ACCOUNT EXPLANATION
Salaries earned by new vehicle salespeople, including vacation pay, granted holidays, authorized absence from work, training time, and guaranteed minimum commissions paid but not earned through the sale of new vehicles.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Salaries earned by new vehicle salespeople PR
    Salaries—Salespeople—New 7070
      Accrued Payroll 2410
COMMENTS
  • Salaries of combination salespeople should be equitably distributed between this account and Account 7270, Salaries—Salespeople—Used.
  • Incentives earned by new vehicle salespeople based on the performance of the new vehicle department should be charged to Account 7000, Commissions & Incentives—Salespeople—New.
  • Bonuses of new vehicle salespeople based on total dealership profit should be charged to Account 9550, Employee Bonuses.
  • Payments in lieu of commissions to commission salespeople for attending training courses should be charged to Account 7140, Training—New.
  • 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.