Commission Clawbacks and Reversals Under ASC 340-40: Journal Entries When a Deal Churns, Downgrades, or Was Miscalculated
A clawback touches three balances at once: the rep’s payout, the deferred commission asset, and the amortization already expensed. One paid-and-amortizing commission is worked through a full clawback, a 50% clawback, a no-clawback cancellation, and a downgrade, with the ASC 340-40 impairment test and the entries for each.