Advertising—Service – Ford Online Accounting Manual

Expenses

ADVERTISING—SERVICE	EXPENSE ACCOUNT
	7730/7930

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Advertising costs that are directly related to the sale of service. Includes service department advertising in media: newspapers, radio, magazines and direct mail including postage; and the cost of customer mailing lists.

TRANSACTIONS

			Jrnl.	Dr.	Cr.

Spot radio announcements for body shop			P
	Advertising—Service			7730
	Advertising—Service—Quick Lane			7930
		Accounts Payable—Trade			2100

Payment of customer service follow-up program			CD
	Advertising—Service			7730
	Advertising—Service—Quick Lane			7930
		Cash in Bank—General			1001

Direct mailing of service special to customers			CD
	Advertising—Service			7730
	Advertising—Service—Quick Lane			7930
		Cash in Bank—General			1001

COMMENTS

The cost of advertising that benefits more than one department should be allocated equitably to the benefiting departments.
See also Account 7830, Advertising—Body Shop.