October 30, 2016 admin

Promotion—Used

Expenses

PROMOTION—USED EXPENSE ACCOUNT
7330

ACCOUNT EXPLANATION
Costs of promotional activities that are directly related to the sale of used vehicles. Includes promotional banners and pennants, salespeople’s business cards, lot displays, placards, gifts and awards.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Check issued for banners and pennants for used car lot CD
    Promotion—Used 7330
      Cash in Bank—General 1001
             
  Business cars purchased for used car salespeople P
    Promotion—Used 7330
      Accounts Payable—Trade 2100
COMMENTS
  • Dealers should consult tax counsel for information as to documentation necessary to substantiate travel, entertainment, gifts and awards for income tax purposes.
  • 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.