Question

The journal entry of paid for advertising

Answer 1

Answer:The two common journal entry are-

Business uses accounts payable -

Debit Accounts Payable (needs to go against a particular vendor in the AP sub-ledger)

Credit Cash

2. Business charges payments directly to expenses

Debit Expenses (needs to go against particular accounts for rent, utilities, etc.)

Explanation:

Answer 2

Answer:

Advertising expense refers to a expense that a company incurred for the promotion or publicity of the products. There are certain benefits of advertising:

(i) Increases the reach of the product.

(ii) People can know the features or characterstics of the product.

Here, we assume that company pays for the advertising directly with cash (say, $50). So, the journal entry of paid for advertising is as follows:

Advertising expense A/c     Dr. $50

To Cash A/c                                        $50

(To record the advertising expense paid for cash)