19 – Advertising – New & Used Vehicle Departments

Vehicle Selling Expenses

Synopsis

Account 19

Debits

Credits

  1. All expenditures for advertising directly related to vehicles sales, excluding internet or social network expenditure.

  2. The monthly write-off of the expired portion of prepaid advertising directly related to vehicles sales.

  3. Distributor/Factory/Ad Group co-op or other advertising charges.

 

 

Remarks:

This account should include advertising for the express purpose of promoting vehicle sales only.

Distributor/Factory/Ad Group co-op or other advertising reimbursements on new vehicles should be reflected as a credit in Account 31A or 31F – Advertising Rebates.  Typical advertising charges to this account include such items as newspaper; radio; television; direct mail related to new vehicles (including postage); premiums to non-retailer personnel for the express purpose of promoting new vehicles sales; posters and handouts; auto show exhibits; promotional banners, pennants, new model announcement material; magazines; and local civic events, etc.

Advertising expenses should be distributed to the New Subaru, New Other and Used Vehicle Department, as applicable.