malccounting
Mar 5, 2011, 10:58 AM
We pay for advertising out of our own pocket. We are then, in time, compensated by the head company for 50% of the advertising cost.
What would be the appropriate journal entries?
Advert Exp. XXXX
Cash XXXX
Compensation Receivable(?) XXXX
Unsure what second entry should be? Should I just balance the receivable with the cash from the first entry and my expense is really only 50% that hits my income statement?
What would be the appropriate journal entries?
Advert Exp. XXXX
Cash XXXX
Compensation Receivable(?) XXXX
Unsure what second entry should be? Should I just balance the receivable with the cash from the first entry and my expense is really only 50% that hits my income statement?