Question

In: Accounting

The following expenses were incurred by a merchandising business during the year.

The following expenses were incurred by a merchandising business during the year. In which expense section of the income statement should each be reported: (a) selling, (b) administrative, or (c) other?

  • Advertising expense

  • Depreciation expense on store equipment

  • Insurance expense on office equipment

  • Interest expense on notes payable

  • Rent expense on office building

  • Salaries of office personnel

  • Salary of sales manager

  • Sales supplies used


Solutions

Expert Solution

1. Advertising expenses = Selling Expenses

2. Depreciation expenses on store equipment = Administrative Expenses

3. Insurance Expenses = Administrative Expenses

4. Interest Expenses on Notes payable = Others

5. Rent expenses on office building = Administrative Expenses

6. Salaries of office personal = Administrative Expenses

7. Salaries of Sales Manager = Selling Expenses

8. Sales supplies used = Selling Expenses

ekkarill92 answered 2 years ago
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