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The following expenses were incurred by a merchandising business during the year. In which expense section of the income statement should each be reported:
(a) Selling,
(b) Administrative, or
(c) Other?
1. Advertising expense
2. Depreciation expense on store equipment
3. Insurance expense on office equipment
4. Interest expense on notes payable
5. Rent expense on office building
6. Salaries of office personnel
7. Salary of sales manager
8. Sales supplies used
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On January 1 of Year 1, Dorso Company adopted the dollar value LIFO method of inventory costing. Dorso's December 31 ending inventory records are as follows:
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