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On November​ 1, 2018, a company using accrual​ accounting, pays for a television advertising campaign. Commercials will run evenly over six months beginning on November​ 1, 2018. How much Advertising Expense will be reported on an income statement prepared for the year ended December​ 31, 2018?

Respuesta :

Answer:

the advertising expense reported is $340,000

Explanation:

The computation of the advertising expense reported is as follows:

= Amount to be paid × number of months ÷ given months

= $1,020,000 × 2 months ÷ 6 months

= $340,000

Here the number of months would be 2 that is taken from Nov 1, 2018 to December 31,2018

Hence, the advertising expense reported is $340,000

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