70 – Travel & Entertainment

Operating Expenses

Synopsis

Account 70

Remarks:

Specific information relating to each expenditure is required for income tax purposes.  Complete supporting evidence must be available for tax inspection, if requested.

Travel expense of personnel attending training schools should be charged to the appropriate department’s Training (Account 50).

All travel and entertainment expenditures should be supported by expense vouchers, proper documents, indicating (in detail) dates involved, destination of travel, purpose of the trip, names of persons entertained, and other pertinent information.

It is recommended that the retailer obtain outside accounting and tax counsel relating to the proper handling of travel and entertainment expense.

Expenses in this account should be distributed to the respective operating department or prorated as applicable.

Note: