Abe & Anna Split Ice Cream Parlour paid $1,800 cash for a 6-month advertising contract on September 30,2013.The amount of advertising expense reported on the Income Statement for the year ending December 31,2016,for this advertising contract is

Question

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The advertising expense is $1,800 / 6 months = $300 per month. For the year ending December 31, 2016, the advertising expense for this contract is $300 * 3 months = $900.

Abe & Anna Split Ice Cream Parlour Paid $1,800 Cash