The adjusted trial balance of Abacus Co. included the followingexpenses for 2020:Accounting and legal feesAdvertising1,450,0001,500,000Doubtful accounts150,000Freight inFreight out125,000750,000Insurance50,000Interest expense600,000Loss on sale of equipment300,000Officers' salaries2,250,000Property taxesRent for office spaceResearch and development expense250,0001,800,0001,000,000Sales salaries and commissions1,400,000Half of the rented premises is occupied by the sales department.How much should be reported as Administrative expense for2020?

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Business

Accounting

How much should be reported as Administrative expense for 2020?

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

The adjusted trial balance of Abacus Co. included the following
expenses for 2020:
Accounting and legal fees
Advertising
1,450,000
1,500,000
Doubtful accounts
150,000
Freight in
Freight out
125,000
750,000
Insurance
50,000
Interest expense
600,000
Loss on sale of equipment
300,000
Officers' salaries
2,250,000
Property taxes
Rent for office space
Research and development expense
250,000
1,800,000
1,000,000
Sales salaries and commissions
1,400,000
Half of the rented premises is occupied by the sales department.
How much should be reported as Administrative expense for
2020?

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