Reference no: EM132802471

Question - Jaybo Co. incurred the following expenses below:

Interest expense = 12

Cost of inventories sold = 300

Insurance expense = 50

Advertising expense = 10

Freight out = 5

Freight inn = 2

Loss on sale of equipment = 1

Legal and other professional fees = 6

Rent expense (one half occupied by sales department) = 4

Sales commission expense = 7

Doubtful accounts expense = 8

Q1) What total amount of expense classified as distribution costs or selling expenses?

A. 64

B. 24

C. 26

D. 22

Q2) What total amount of expense classified as administrative expenses?

A. 64

B. 16

C. 56

D. 66

Q3) Assuming Jaybo earned sales revenue amounting to P500 during the current year, what is the net income?

A. 95

B. 97

C. 200

D. 66.5