Promotional Expense Journal Entry

Promotional Expenses are those Expenses which are incurred by the companies to promote business’ products or services through various marketing methods or marketing techniques such as advertisements, banners, billboards, etc. Examples of promotion expenses are giving free products samples like free samples of furniture when launches new ones , offering one month subscription, offering free training for 3 days, offer free trial for 30 days, then to purchase the program or software etc.

The journal entry to record promotional expenses is shown below:

                              Promotional Expenses a/c  XXX

                                                                        Cash a/c / Bank a/c  XXX

                                                  (Promotional Expenses Paid for the Period)

The promotional expense is a Temporary Account and it is recorded in Income Statement under Selling & Marketing Expenses.