If sales commission is payable in future time then it is current liability but if it is paid already then it is expense.
Sales commission is a Cost of sales. But the salary of a sales agent is an expense.
Sales commission payable is not part of income statement and it is shown in balance sheet as current liability in liability side of balance sheet.
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
no it is not deirect expenses
If amount of sales commission is fixed and not base on number of units sold then it is fixed expense and vice versa.
They Don't go on the balance sheet unless they are currently earned but owed at a later date. When paid out at the time they are earned they would be assigned to the Income & Expense statement as an expense to "sales commission's Expenses". The only time they would show up on the balance sheet if they were earned but not yet paid out then they would be credited to the accounts payable column in current liabilities as maybe "sales commisions owing" against a debit to the expense account ......... expense account - sales commissions $xxxx Dr - liability account - Sales Commissions owing $xxx Cr
Sales returns and allowances is not a liability rather these are expenses or reduction in actual sales
Yes, period costs are non manufacturing costs
The accounting entry for sales return under warranty is the accrued warranty liability. This entry is written under warranty expense.
true.
Sales tax payable is a current liability and is presented on the credit side of the balance sheet-
Sales return is reduction in sales as customer returns goods for any reason and it is not expense.