Free Samples
Code: 5245
👁 Views: 93
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Cost of free samples given to potential customers or for product promotion.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 38
Intangible Assets
US GAAP
ASC 720
Other Expenses
❓ Frequently Asked Questions
Q: How is the cost of free samples recorded?
A: Dr. Free Samples (marketing expense), Cr. Inventory or Purchases (at sample cost).