Retail
Promotional Gift With Purchase (GWP)
Giving a free promotional item to customers who spend over a threshold amount.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Marketing Expense — GWP | Expense (+) | 8.00 | - |
| Merchandise Inventory (GWP Item) | Asset (-) | - | 8.00 |
💡 Accountant's Note
The promotional gift is removed from inventory at cost and expensed as a marketing cost. No revenue is recorded for the free item. This preserves the integrity of the COGS margin on the main purchase.
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