October 30, 2016 admin

Promotion—Service

Expenses

PROMOTION—SERVICE EXPENSE ACCOUNT
7731/7931

ACCOUNT EXPLANATION
Promotion costs that are directly related to the sale of service. Includes handbills, placards, entertainment of prospective customers, gifts and awards.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Purchase of service reminder calendars for customers P
    Promotion—Service 7731
    Promotion—Service—Quick Lane 7931
      Accounts Payable—Trade 2100
             
  Cost of printing “free wash job” handbills P
    Promotion—Service 7731
    Promotion—Service—Quick Lane 7931
      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.
  • See also Account 7831, Promotion—Body Shop.