Clark Co.’s advertising expense account had a balance of $146,000 at December 31, 2006, before any necessary year-end adjustment relating to the following:
- Included in the $146,000 is the $15,000 cost of printing catalogs for a sales promotional campaign in January 2007.
- Radio advertisements broadcast during December 2006 were billed to Clark on January 2, 2007. Clark paid the $9,000 invoice on January 11, 2007.
What amount should Clark report as advertising expense in its income statement for the year ended December 31, 2006?
- $122,000
- $131,000
- $140,000
- $155,000