October 30, 2016 admin

Promotion—Parts

Expenses

PROMOTION—PARTS EXPENSE ACCOUNT
7631

ACCOUNT EXPLANATION
Promotional costs that are directly related to the sale of parts. Includes handbills, merchandise displays, placards, entertainment of prospective customers, gifts, and awards.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Purchase of material for accessories display in parts department CD
    Promotion—Parts 7631
      Cash in Bank—General 1001
             
  Purchase of awards for jobbers’ contest P
    Promotion—Parts 7631
      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.