Fritz Sales Company spent $180, 000 to advertise in a national sales booklet on April 7, 2010.The booklet is distributed exclusively at the national sales convention during the week beginning on May 14, 2010.Assuming Fritz has a fiscal year ending on December 31, what amount of expense should be included in Fritz's quarterly income statement for the three months ended June 30, 2010, as a result of this advertising expenditure?
A)$ 0
B)$ 45, 000
C)$ 60, 000
D)$180, 000

Question

Quizplus · Accepted Answer

The entire $180,000 should be expensed in the quarter ended June 30, 2010, because the advertising benefit is realized within that quarter when the booklet is distributed at the convention.

Fritz Sales Company Spent $180, 000 to Advertise in a National