Company incurred the ollowing costs the current year: Property taxes Freight in Doubtful accounts Officers' salaries Insurance 250,000 1,750,000 1,600,000 1,500,000 850,000 2,150,000 500,000 1,000,000 Sales representative salaries Interest on inventory loan Research and development expense What amount of these costs should be reported as administrative expenses? a. 2,600,000 b. 3,350,000 c. 5,200,000 d. 4,200,000

Company incurred the ollowing costs the current year: Property taxes Freight in Doubtful accounts Officers' salaries Insurance 250,000 1,750,000 1,600,000 1,500,000 850,000 2,150,000 500,000 1,000,000 Sales representative salaries Interest on inventory loan Research and development expense What amount of these costs should be reported as administrative expenses? a. 2,600,000 b. 3,350,000 c. 5,200,000 d. 4,200,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Problem 4-9 (AICPA Adapted)
Grim Company incurred the following costs during the
current year:
Property taxes
Freight in
Doubtful accounts
Officers' salaries
Insurance
250,000
1,750,000
1,600,000
1,500,000
850,000
2,150,000
500,000
1,000,000
Sales representative salaries
Interest on inventory loan
Research and development expense
What amount of these costs should be reported as
administrative expenses?
a. 2,600,000
b. 3,350,000
c. 5,200,000
d. 4,200,000

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