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On December 31, 2019, Listowel Company had a P1,500,000 balance in the advertising expense account before any year-end adjustments: Radio and television advertising spots broadcast

On December 31, 2019, Listowel Company had a P1,500,000 balance in the advertising expense account before any year-end adjustments:

  • Radio and television advertising spots broadcast during December 2019 were billed to Listowel on January 4, 2020. The invoice cost of P200,000 was paid on January 15, 2020.
  • Included in the P1,500,000 is P300,000 for newspaper advertising for a January 2020 sales promotional campaign.

What amount should be reported as advertising expense for 2020?

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