Question

Blossom Company reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2017, included the following expense accounts: Accounting and legal fees$412000 Advertising357000 Freight-out225500 Interest180900 Loss on sale of long-term investments89300 Officers' salaries540000 Rent for office space541400 Sales salaries and commissions404800 One-half of the rented premises is occupied by the sales department. How much of the expenses listed above should be included in Blossom's selling expenses for 2017

Answer 1

The expenses included in Blossom's selling expenses for 2017 is $1,258,000

Step-by-step explanation:

In order to calculate the expenses included in Blossom's selling expenses for 2017 we would have to make the following calculation:

expenses included in Blossom's selling expenses for 2017=advertising+freight out+rent for office space+sales salaries and commissions

According to the given data:

advertising=$357,000

freight out=$225,500

rent for office space. One-half of the rented premises is occupied by the sales department, hence, rent for office space=$541,400*0.5=$270,700

sales salaries and commissions=$404,800

Therefore, expenses included in Blossom's selling expenses for 2017=$357,000+$225,500+$270,700+$404,800

expenses included in Blossom's selling expenses for 2017=$1,258,000