How to Record Bid Protest Bonds
Records the premium paid for a surety bond required during a government contract bid protest.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Selling Expenses | Debit | 1,200.00 | - |
| Cash | Credit | - | 1,200.00 |
💡 Accountant's Note
Costs associated with protesting a contract award are generally scrutinized; if deemed unallowable under FAR 31.205-33, they must be isolated in unallowable accounts.
Practitioner & Systems Framework
💻 ERP Architecture
Flag cost as unallowable in the general ledger chart of accounts.
⚠️ Audit Flags
Inclusion of legal or bond costs in G&A pools during DCAA audits.
📄 Required Documentation
Bonding agreement and evidence of payment.
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