Hi,
Need suggestions on how to account for expenses that have been exchage for services. For instance, for advertising services, we provide a service. Currently, we record the advertising expense at the same amount as revenue to a department. So, revenue is increased, and advertising is increased by $. (Please ignore any tax implications like remitting GST). Yet this method overstates revenue, and especially advertising expense. When compare the monthly income statement to the monthly budget, obviously there are no provisions in the advertising expense for these kinds of advertising. The advertising expense is actually the cost of performing services, is it not. Any suggestions out there?