On July 1,Team Shirts paid $600 for three months' worth of advertising beginning on July 1.What is Advertising expense for the MONTH ended August 31?
A)$0
B)$200
C)$400
D)$600

Question

Quizplus · Accepted Answer

The advertising expense for the month ended August 31 is only for one month, as the payment of $600 was for three months beginning on July 1. Therefore, the monthly expense is $200 ($600/3), and option B is the correct choice.

On July 1,Team Shirts Paid $600 for Three Months' Worth