We are a tackle store, an S corporation, and we sponsor a couple of freshwater anglers to fish tournaments. We pay for their entry fees, lodging costs, and give them product.
We use Quickbooks for bookkeeping, so my question is how to we expense these various form of sponsorship. I would think that the entry fees and lodging costs would be categorized as advertising. But I would like to know how to categorize the products. Some of the products have been purchased and are already listed as COGS and then pulled from stock to give to the angler. But other products have been purchased directly, paying full cost with sales tax, and given to the angler. How would these two variations of products given be listed?
