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Journal entries for accrual of deferred commissions

I understand the concept of deferred commissions, but I am having trouble with putting together the initial journal entries with regards to the deferred commissions. I understand that deferred commission is a cost that is incurred for obtaining a new contract with a customer. These costs are then capitalized as an asset and amortized as the contract is satisfied and revenue stream is generated from that contract. What would the journal entries look like as the deferred commission is incurred and when it is amortized?


Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

Might I suggest a Google, with a result such as: (see page 57) and start your research there...

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