Advertising and trade shows

[winnie]

Have a client in their 2nd year of business selling salsa and related products. They have incurred big dollars (porportionately about 25% of sales) on trade shows, samples and outright advertising. We are not talking hotel bills and meals for owners. Owners are working very hard to get the product on the grocery store shelves, which is quite a challenge.

Finally the question! Would all of this be reported as advertising as an individual line item? Or would you break things like trade show expense out as an "other deductions"? I have never been completely clear on what should and should not be included in that advertising line item. Thanks for the help.

[oceanlovin'ea]

Little of both

I would list trade shows (the cost of entering) as one item. I would list samples as an item too. Maybe I break things down too much. But if you ever had to go back and figure out what a figure included it would be a lot easier if you didn't lump too much together.

Linda F

[sea-tax]

I personally follow Linda's school of thought and break it out under other expenses with a descriptive name for the expense like Trade Show Fees