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Alenkasestr [34]
3 years ago
6

Carla Vista Co. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial

balance at December 31, 2020, included the following expense accounts: Accounting and legal fees $421000 Advertising 364000 Freight-out 225500 Interest 174100 Loss on sale of long-term investments 89600 Officers' salaries 541000 Rent for office space 540000 Sales salaries and commissions 404000 One-half of the rented premises is occupied by the sales department. How much of the expenses listed above should be included in Carla Vista's selling expenses for 2020
Business
1 answer:
DaniilM [7]3 years ago
3 0

Answer:

$1.263,000

Explanation:

The amount of expenses to be included in P's selling expenses is calculated as follows:

Particulars                                  Amount

Advertising                                 $364,000

Freight out                                  $225,500

Rent for office space                  $270,000    (540,000*1/2)

Sales salaries & commissions    <u>$404,000</u>

Total                                             <u>$1.263,000</u>

So, the total amount to be included in selling expenses is $1.263,000.

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