32 – Advertising – Association

Vehicle Selling Expenses

Synopsis

Account 32

Debits

Credits

  1. Debit with the voluntary per vehicle assessment charged on Subaru vehicle invoices for belonging to an advertising association.

  1. Monies reimbursed from the ad association.

 

 

Remarks:

Advertising Association charges should not be included in the cost of sales of Subaru vehicles.  The purpose of an ad association is to increase Subaru dealer advertising in the dealer’s primary market.  Adding ad association charges to the cost of sales will distort the true amount spent on dealer advertising and incorrectly understate vehicle gross profits.