Institutional Advertising – Ford Online Accounting Manual

Expenses

INSTITUTIONAL ADVERTISING	EXPENSE ACCOUNT
	8220

Advertising costs that benefit the dealership as a whole. Includes roadside signs, program space, and classified directory.

			Jrnl.	Dr.	Cr.

Payment of telephone company invoice for advertisement in yellow pages			CD
	Institutional Advertising			8220
		Cash in Bank—General			1001

Purchase of as in high school yearbook			CD
	Institutional Advertising			8220
		Cash in Bank—General			1001

Advertising directly related to the operating departments should be charged to advertising expense of the department involved.
For handling of large advertising expenditures that will benefit future accounting periods, see Account 1500, Prepaid Advertising.
For departmentalization purposes, record the total amount in Unapplied Expenses, so it can be allocated to the various departments when total Unapplied Expenses are departmentalized. See Departmentalization for further information.