October 30, 2016 admin

Professional & Service Fees

Expenses

PROFESSIONAL & SERVICE FEES EXPENSE ACCOUNT
8660/8665/8706

ACCOUNT EXPLANATION
Expense of services such as legal, accounting, auditing, and tax. Service fees include equipment rentals, outside custodial service, protection service, collection agency, rubbish removal and national credit card discount.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly accrual of annual audit fee SE
    Professional & Service Fees 8660
    Professional & Service Fees—Service—QL/FL/QCSC 8665
    Professional & Service Fees—Parts —QL/FL/QCSC 8706
      Accrued Other Expenses 2423
             
  Collection of service account receivable by collection agency, less fee CR
    Cash in Bank—General 1001
    Professional & Service Fees 8660
    Professional & Service Fees—Service—QL/FL/QCSC 8665
    Professional & Service Fees—Parts—QL/FL/QCSC 8706
      Accounts Receivable—Parts 1120
      Accounts Receivable—Service     1121
      Accounts Receivable—Body Shop     1122
             
  Record the discount fee on repair work involving use by customer of credit card PS
    Accounts Receivable—Parts 1120
    Accounts Receivable—Service   1121
    Accounts Receivable—Body Shop   1122
    Professional & Service Fees   8660  
    Professional & Service Fees—Service—QL/FL/QCSC   8665  
    Professional & Service Fees—Parts—QL/FL/QCSC   8706  
      Sales—Labor—Repair Shop     5700
    Cost of Sales—Labor—Repair Shop   6700  
      Inventory—Labor in Process     1440
COMMENTS
  • Data processing services and equipment rental should be charged to Account 7690, Inventory Control—Parts, or Account 8680, Data Processing, as appropriate.
  • For departmentalization purposes, fees applicable exclusively to a specific operating department should be charged to that department. Fees applicable jointly to several operating departments or to the total dealership should be distributed as provided in Departmentalization.
  • Tax counsel should be obtained with respect to accrued professional and service fees remaining unpaid at year end and requirements for filing information returns.