October 30, 2016 admin

Travel & Entertainment

Expenses

TRAVEL & ENTERTAINMENT EXPENSE ACCOUNT
8800/8805/8826

ACCOUNT EXPLANATION
Expense of travel and entertainment in connection with the operation of the dealership, such as transportation, lodging, meals, and entertainment of customers.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Reimbursement of dealer for entertainment of customer CD
    Travel & Entertainment 8800
    Travel & Entertainment—Service—QL/FL/QCSC 8805
    Travel & Entertainment—Parts—QL/FL/QCSC 8826
      Cash in Bank—General 1001
             
  Purchase of airline ticket for business travel P
    Travel & Entertainment 8800
    Travel & Entertainment—Service—QL/FL/QCSC 8805
    Travel & Entertainment—Parts—QL/FL/QCSC 8826
      Accounts Payable—Trade 2100
COMMENTS
  • Travel and subsistence expense incurred by dealership personnel attending training activities should be charged to the appropriate account provided for training expense.
  • Dealers should consult tax counsel for information as to documentation necessary for income tax purposes.
  • For departmentalization purposes, travel and entertainment generated by specific operating departments should be charged to those departments. Expense applicable to the dealership as a whole should be distributed to Unapplied Expenses. See Departmentalization for further information.