October 30, 2016 admin

Advertising—Parts

Expenses

ADVERTISING—PARTS EXPENSE ACCOUNT
7630

ACCOUNT EXPLANATION
Advertising costs that are directly related to the sale of parts. Includes parts department advertising in media: newspapers, television, radio, magazines and direct mail including postage; and the cost of customer mailing lists.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Purchase of trade magazine space for special sale on parts CD
    Advertising—Parts 7630
      Cash in Bank—General 1001
             
  Purchase of mailing list of wholesale jobbers P
    Advertising—Parts 7630
      Accounts Payable—Trade 2100
             
  Payment for direct mailing to parts wholesale accounts CD
    Advertising—Parts 7630
      Cash in Bank—General 1001
COMMENTS
  • The cost of advertising that benefits more than one department should be allocated equitably to the benefiting departments.