October 30, 2016 admin

Salaries—Managers—Service

Expenses

SALARIES—MANAGERS—SERVICE EXPENSE ACCOUNT
7700/7900

ACCOUNT EXPLANATION
Salaries and wages, including vacations, granted holidays, authorized paid absence from work, and training time, of service department managers.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Gross earnings of the service manager for payroll period PR
    Salaries—Managers—Service 7700
    Salaries—Managers—Service—Quick Lane 7900
      Accrued Payroll 2410
             
  Month-end accrual for amount earned in current period, but payable in a subsequent accounting period PR or SE
    Salaries—Managers—Service 7700
    Salaries—Managers—Service—Quick Lane 7900  
      Accrued Payroll 2410
COMMENTS
  • If a manager spends a portion of his time in the service department, such time should be charged to this account and the remainder should be charged to the salary or wage account of the other department involved.
  • Bonuses of service managers based on total dealership profit should be charged to Account 9550, Employee Bonuses.
  • See also Account 7800, Salaries—Managers—Body Shop.