October 30, 2016 admin

Commissions & Incentives—Salespeople—Used

Expenses

COMMISSIONS & INCENTIVES—SALESPEOPLE—USED EXPENSE ACCOUNT
7200

ACCOUNT EXPLANATION
Commissions and incentives paid or accrued to salespeople on the sale of used cars, trucks, options, accessories, truck bodies and equipment, finance contracts and insurance. Includes incentives based on the performance of the used vehicle department.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Commissions earned by salespeople on used car sales PR
    Commissions & Incentives—Salespeople—Used 7200
      Accrued Payroll 2410
             
  Bird-dog fee paid for used car prospect CD
    Commissions & Incentives—Salespeople—Used 7200
      Cash in Bank—General 1001
             
  Prizes earned by salespeople on used truck sales PR
    Commissions & Incentives—Salespeople—Used 7200
      Accrued Payroll 2410
COMMENTS
  • Bird-dog fees paid to persons other than regular dealership employees should be charged to this account.
  • Guaranteed minimum commissions paid but not earned through the sale of used cars and trucks should be charged to Account 7270, Salaries—Salespeople—Used.
  • Bonuses of used vehicle salespeople based on total dealership profit should be charge to Account 9550, Employee Bonuses.
  • Commissions, incentives, prizes, etc., paid to dealership employees are subject to withholding and should be recorded through the Payroll Journal. Tax counsel should be consulted as necessary.
  • If used vehicle activities are organized into two or more separate departments, charges to this account should be distributed directly to the departments generating the expense. See Departmentalization for further information.