October 30, 2016 admin

Office Supplies

Expenses

OFFICE SUPPLIES EXPENSE ACCOUNT
8640/8645/8666

ACCOUNT EXPLANATION
Expense of office forms, invoices, stationery, accounting records, supplies, postage, and office equipment items of nominal value.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly write-off of prepaid repair order forms SE
    Office Supplies 8640
    Office Supplies—Service—QL/FL/QCSC 8645
    Office Supplies—Parts—QL/FL/QCSC 8666
      Prepaid Miscellaneous 1560
             
  Postage purchased for general use CD
    Office Supplies 8640
    Office Supplies—Service—QL/FL/QCSC 8645
    Office Supplies—Parts—QL/FL/QCSC 8666
      Cash in Bank—General 1001
COMMENTS
  • Normally, purchases of office supplies are minor in amount and should be charged directly to this account. However, purchases involving substantial outlays for such supplies as vehicle invoices and repair orders should be charged to Account 1560, Prepaid Miscellaneous, and written off monthly to this account.
  • Control should be maintained to minimize waste and misuse of forms and supplies.
  • A method of controlling accountable documents is described in Office Management.
  • For departmentalization purposes, office supplies used exclusively by a specific operating department should be charged to that department. The cost of office supplies used jointly by all departments or applicable to the activities of the total dealership should be distributed as provided in Departmentalization.