Advertising Expense Journal Entry
Advertising Expenses are incurred to promote the products, Bra nd’s N ames and other marketing purposes. It is an Indirect Expense for the advertiser company which is paid to the advertising company who places the ads, banners, etc of advertiser company in order to promote the business of advertiser. For Example, A BC is a n Advertiser company who starts a campaign with advertising company XYZ to promote its offers through ads. The advertiser company paid Rs. 20000 for broadcasting the ads for 15 days, then it is an Expense for the advertiser and a Revenue for advertising company as a fees. From the point view of Advertiser’s business, the following Journal Entry is recorded in its B ooks of Accounts as shown below: Advertising Expense Account 20000 ...