in commission expenses and a credit in commissions payable. The next period, when the salesperson is to be paid, commissions payable is changed to debit and the commissions expense is now a credit. Then the actual payment is recorded as a debit for commissions expense and a credit for cash....
2. Sales general and administration (SG&A) – these are expenses that aren’t tied up in the product or service itself. They may include things like business travel, sales commissions, salaries for managers, and general admin. 3. Depreciation (and amortisation) – records the diminishing value...
Federal Income Tax as a Tax Expense Arguably, the most common tax expense for most Americans is income tax. The federal government imposes taxes on the income you earn, which includes salaries, wages, tips, and commissions. Income taxes also apply to unearned income, such as interest or div...
Examples of Expense Some of the expenses that will be reported on a retailer’s income statement for the month of August include: Cost of goods sold for the August sales. (The date that the retailer had paid for the goods is not pertinent.) Commissions earned by the sales staff for havin...
Expense: an outflow of money Some of the likely expenses for an airline may include: the cost of tickets sold, commissions earned by travel agents, airport fees, rent for checking-in space at airports, the cost of utilities at its offices, money it spent on advertising, wages and salaries...
Annuities are popular with retirees because they can provide a stream of income for a certain period of time or even for the remainder of their lives. However, annuities often have high fees and can come with huge commissions for salespeople. Commission-free annuities may be a better choice, ...
Why is compensation management important? Several factors make compensation management an essential practice in many organizations: Salaries are typically a business's biggest expense. Executives need good data to prepare and monitor budgets, plan their compensation strategy and make consistent compensation ...
To make the most effective use of capital losses, keep track of your investment cost basis. The cost basis is generally equal to an investment's purchase price plus any expenses necessary to acquire that asset, such as commissions and transaction fees. ...
What Are Some Semi-Variable Administrative Expenses? Semi-variable administrative expenses can include salaries, audit and legal fees, vehicle use, and commissions. They can also include utility costs that charge a base amount due plus an extra expense associated with usage.3 What Is Depreciation in...
A fee is a fixed price charged for a specific service. Fees are applied in a variety of ways and appear as costs, charges, commissions, and penalties. Fees are most commonly found in heavily transactional services and are paid in lieu of a wage or salary. ...