October 30, 2016 admin

Salaries—Salespeople—Used

Expenses

SALARIES—SALESPEOPLE—USED EXPENSE ACCOUNT
7270

ACCOUNT EXPLANATION
Salaries earned by used 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 used vehicles.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Salaries earned by used car salespeople PR
    Salaries—Salespeople—Used 7270
      Accrued Payroll 2410
COMMENTS
  • Salaries paid to salespeople who sell both new and used cars should be equitably distributed between this account and Account 7070, Salaries—Salespeople—New.
  • Incentives earned by used vehicle salespeople based on the performance of the used vehicle department should be charged to Account 7200, Commissions & Incentives—Salespeople—Used.
  • Bonuses of used vehicle salespeople 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.