An entity reported the following data for the current year: Legal and audit fees 1,700,000 Rent for office space 2,400,000 Advertising 500,000 Interest on inventory loan 2,100,000 Loss on abandoned data processing equipment 350,000 Freight in 1,750,000 Freight out 1,600,000 Officers` Salaries 1,500,000 Insurance 850,000 Sales representative salaries 2,150,000 Research and development expense 1,000,000 The office space is used equally by the sales and accounting departments. Question 1: What amount should be classified as general and administrative expenses? a. 5,250,000 c. 5,600,000 b. 6,450,000 d. 6,250,000 Question 2: What amount should be reported as selling expense? a. 5,450,000 c. 6,300,000 b. 4,250,000 d. 6,450,000
An entity reported the following data for the current year:
Legal and audit fees 1,700,000
Rent for office space 2,400,000
Advertising 500,000
Interest on inventory loan 2,100,000
Loss on abandoned data processing equipment 350,000
Freight in 1,750,000
Freight out 1,600,000
Officers` Salaries 1,500,000
Insurance 850,000
Sales representative salaries 2,150,000
Research and development expense 1,000,000
The office space is used equally by the sales and accounting departments.
Question 1: What amount should be classified as general and administrative expenses?
a. 5,250,000 c. 5,600,000
b. 6,450,000 d. 6,250,000
Question 2: What amount should be reported as selling expense?
a. 5,450,000 c. 6,300,000
b. 4,250,000 d. 6,450,000
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