85 – Insurance – Buildings & Improvements

Overhead Expenses

 

Synopsis

Account 85

Debits

Credits

  1. The monthly portion of all insurance premiums for insurance coverage on all buildings and improvements owned by the retailer and used in regular retailer activities.

 

 

Remarks:

Insurance premiums should be charged to Prepaid Expenses - Insurance (Account 269B), and the premium expensed monthly over the life of the policy.

Insurance on rented property is considered as part of the rent factor and should be charged to Rent/Lease (Account 80).

All insurance policies should be reviewed periodically for duplicate or unneeded coverage.

Typical charges to this account include real estate insurance coverage for fire, tornado, plate glass, boiler, and extended coverage.

Note: