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

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

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

the correct answer is - no.

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