11 – Compensation & Incentives – Salespeople

Vehicle Selling Expenses

Synopsis

Account 11

Debits

Credits

  1. The salaries of salespeople for selling new and used vehicles.

  2. The commissions and incentives earned by salespeople for selling new and used vehicles.

  1. The reversal of the month-end accrual of commissions and incentives earned on new and used vehicles.

 

 

Remarks:

Commission and incentives earned by a supervisor should be charged to this account.

This account should excess of guarantees over commissions earned.

Holidays and vacation time for salespeople should be charged to Account 24 – Absentee Compensation.

Incentives include such items as premiums, prize points, etc., for which the retailer has incurred an expense.