October 30, 2016 admin

Advertising—Body Shop

Expenses

ADVERTISING—BODY SHOP EXPENSE ACCOUNT
7830

ACCOUNT EXPLANATION
Advertising costs that are directly related to the sale of body shop services. Includes body shop advertising in media: newspapers, television, 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—Body Shop 7830
      Accounts Payable—Trade 2100
             
  Payment of customer follow-up program CD
    Advertising—Body Shop 7830
      Cash in Bank—General 1001
             
  Direct mailing of new equipment announcement/special CD
    Advertising—Body Shop 7830
      Cash in Bank—General 1001
COMMENTS
  • The cost of advertising that benefits more than one department should be allocated equitably to the benefiting departments.