Perry Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2010, included the following expense accounts:
Accounting and legal fees $140,000
Loss on sale of long-term investments $30,000
Officers' salaries $180,000
Rent for office space $180,000
Sales salaries and commissions $110,000
One-half of the rented premises is occupied by the sales department.
How much of the expenses listed above should be included in Perry's selling expenses for 2010?
Selling expenses are those which are incurred in making the sales. ...
The solution explains which expenses would be classified a selling expenses