36 – Compensation - Express Service

Personnel Expenses

Synopsis

Account 36

Debits

Credits

  1. Compensation earned by Express Service employees.

  1. Adjustments to previously recorded expense.

 

Remarks:

Examples of employees that would be included in this account are Express Service Representatives and the portion of Express Service Technician wages not debited to cost of sale accounts.

Since in most cases Express technicians are employed on a salary, hourly, or guaranteed basis, their compensation will be charged to appropriate cost of sales account when they are paid; the amount that has been determined that Parts Department will absorb should be charged to Compensation – Express Service Account 36D (Parts).

Each item of this expense should be distributed to the respective operating department.  Express Service personnel perform services for more than one department and should have their salaries prorated on an equitable basis.