Expenses
DEALER SALARY |
EXPENSE ACCOUNT |
8900 |
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ACCOUNT EXPLANATION
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Salaries of officers of a dealership corporation, partners, or proprietor engaged in the general management of the dealership. |
TRANSACTIONS
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Jrnl. |
Dr. |
Cr. |
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Salary earned by dealer |
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PR |
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Dealer Salary |
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8900 |
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Accrued Payroll |
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2410 |
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COMMENTS
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- The salaries of officers or partners who perform a primary function as manager of an operating department should be charged to the salary account of the appropriate department.
- Dealer compensation based upon total dealership profit should be charged to Account 9500, Dealer Bonus.
- For departmentalization purposes, dealer salary should be allocated directly to operating departments based upon the dealer’s estimate of time spent on the activities of each department. Estimated time spent on general dealership business should be distributed to Unapplied Expenses. See Departmentalization for further information.
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