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Hickory Furniture Company had the following costs paid during the month of May: Inventory Purchases $40,000; Advertising Costs $8,000; Delivery Costs $2,000. Hickory sold $32,000
Hickory Furniture Company had the following costs paid during the month of May: Inventory Purchases $40,000; Advertising Costs $8,000; Delivery Costs $2,000. Hickory sold $32,000 of the inventory and has agreed to pay warranty expenses for its customers. These are expected to be $1,600 and occur evenly over the next four months (i.e., starting in June). What is the amount of Hickory's May expenses when applying the matching principle?
$33,600 | ||
$42,400 | ||
$43,600 | ||
$50,000 |
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