October 30, 2016 admin

Institutional Promotion

Expenses

INSTITUTIONAL PROMOTION EXPENSE ACCOUNT
8240

ACCOUNT EXPLANATION
Costs of promotion designed to improve the goodwill and public acceptance of the dealership. Includes costs such as novelty gifts, team sponsorships, and driver training expense.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Gift key chains purchased for distribution to customers P
    Institutional Promotion 8240
      Accounts Payable—Trade 2100
             
  Baseball equipment purchased for team using dealership name CD
    Institutional Promotion 8240
      Cash in Bank—General 1001
COMMENTS
  • Promotion costs directly related to the operating departments should be charged to promotion expense of the department involved.
  • Dealers should consult tax counsel for information as to documentation necessary to substantiate travel, entertainment, gifts and awards for income tax purposes.
  • For departmentalization purposes, distribute to Unapplied Expenses for subsequent allocation across departments. See Departmentalization for further information.