October 30, 2016 admin

Commissions & Incentives—Sales Managers—Used

Expenses

COMMISSIONS & INCENTIVES—SALES MANAGERS—USED EXPENSE ACCOUNT
7210

ACCOUNT EXPLANATION
Commissions and incentives paid or accrued to sales managers on the sale of used cars, trucks, related options and 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 sales managers on used car sales PR
    Commissions & Incentives—Sales Managers—Used 7210
      Accrued Payroll 2410
             
  Prizes earned by sales managers on used truck sales PR
    Commissions & Incentives—Sales Managers—Used 7210
      Accrued Payroll 2410
COMMENTS
  • 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.
  • Salaries of supervisors of used vehicle salespeople should be charged to Account 7280, Salaries—Sales Managers—Used.
  • Bonuses of used vehicle sales managers based on total dealership profit should be charged to Account 9550, Employee Bonuses.
  • 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.