Vélia Sécurité concludes a 3-year security services contract worth 180,000. It immediately pays its saleswoman, by bank transfer, a bonus of 4 % of that value, due solely because of the signing. Vélia expects to recover this cost; as the amortisation period exceeds one year, the practical expedient is not applicable. Record the entry for the bonus.
- Contract value
- 180,000
- Bonus rate
- 4 %