At Bandalay's annual management meeting, the following accounts and amounts were shared in the presentation. However, these account titles did not match the terms loosely discussed in the meeting.
Cost of merchandise sold $420,000 Salaries and wages expense 238,000 Uncollectible accounts expense 19,500 Depreciation expense 85,600 Rent expense 76,300 Marketing expense 25,800 Research and development 44,000 Cost of land for new office building 320,000
Nathan was the only new employee there and is unsure of what all these terms mean. As part of the accounting staff, your task is to help him begin to understand the basics of costs and expenses.
Help Nathan interpret the below list of cost accounts by categorizing each as an expense or an asset, and calculate Bandalay's totals for the year.
Thanks
