Reference no: EM132811898

Clark Co.'s advertising expenses account haa a balance of P146,000 at December 31, 2x03, before any necessary year-end adjustment relating the following:

1. Included in the P146,000 is the P15,000 cost of printing catalogs for a sales promotional campaign in January 20x4.
2. Radio advertisements broadcast during December 20x3 were billed to Clark on January 2, 20x4. Clark paid the P9,000 invoice on January 11, 20x4.

Problem 1: What amount should Clark report as advertising expense in its income statement for the year ended December 31, 20x3?

a. 122,000
b. 131,000
c. 140,000
d. 155,000