Hour Place Clock Repair paid $3,600 cash in advance for a six month advertising contract with the local newspaper. According to the matching principle, if 4 months of the contract has expired by the end of the current fiscal year, how much should Hour Place Clock Repair report as Advertising Expense on the Income Statement?

Answer rating: 100% (QA)

Following the matching principle Hour Place Clock Repair should report 2400 as Ad... View the full answer