October 30, 2016 admin

Advertising—Used

Expenses

ADVERTISING—USED EXPENSE ACCOUNT
7310

ACCOUNT EXPLANATION
Advertising costs that are directly related to the sale of used vehicles. Includes used vehicle advertising in media: newspapers, television, radio, magazines, Internet Advertising (Dealer & Ford sponsored) and direct mail including postage; and the cost of owner registration lists.

NOTE: Does not include data processing fees (use Acct. # 8680).
TRANSACTIONS
  Jrnl. Dr. Cr.
  Billing received used car advertising for television, newspaper, radio, magazines, and Internet advertising. P
    Advertising—Used 7310
      Accounts Payable—Trade 2100
COMMENTS
  • Advertising expenditures that will benefit future accounting periods should be charged to Account 1500, Prepaid Advertising.
  • The cost of advertising that benefits more than one department should be allocated equitably to the benefiting departments.
  • If the 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.