October 30, 2016 admin

Other Expenses—F & I—New

Expenses

OTHER EXPENSES—F & I—NEW EXPENSE ACCOUNT
7420

ACCOUNT EXPLANATION
Expenses other than salaries and commissions that are chargeable to the F & I department. Includes F & I advertising, promotion and training expenses.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Direct mail letter to recent new vehicle buyers promoting ESP contracts P
    Other Expenses—F & I—New 7420
      Accounts Payable—Trade 2100
COMMENTS
  • The cost of advertising, training, etc., that benefits more than one department should be allocated equitably to the benefiting departments.
  • Advertising expenditures that will benefit future accounting periods should be charged to Account 1500, Prepaid Advertising.