Clark Co's advertising expense account had a balance of $146,000 at December 31, Year 1, before any necessary year-end adjustment relating to the following:
Included in the $146,000 is the $15,000 cost of printing catalogs in Year 1 for a sales promotional campaign in January Year 2.
Radio advertisements broadcast during December.Year 1 were billed to Clark on January 2, Year 2. Clark paid the $9,000 invoice on January 11, Year 2.
Clark's policy is to expense advertising costs when incurred. What amount should Clark report as advertising expense in its income statement for the year ended December 31, Year 1?