How should i account for free samples sent to potential customers?

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How should i account for free samples sent to potential customers?

We see our products wholesale to salons, hotels and spas. If i want to send samples to a potential customber for free, who do i account for it and deduct the items from inventory?

2006-10-09 13:44:59 · 2 answers · asked by ♥ Ruby ♥ 2 in Business & Finance ➔ Other - Business & Finance

2 answers

It's just a marketing expense.

2006-10-09 13:52:15 · answer #1 · answered by ShouldBeWorking 6 · 0⤊ 0⤋

Its a promotional expense - advertising. I guess you record an internal sale to the ad dept.

2006-10-09 13:47:21 · answer #2 · answered by Norman 7 · 0⤊ 0⤋