Suppose company ABC manufactures cups. However, to sell their cups, ABC needs to incur sales expenses. This includes advertising expenses, salaries and bonuses paid to sales people, etc. Where would sales expense show up on ABC's financial statements? On the income statement, in COGS (Cost of Goods Sold) On the balance sheet, in non-current liabilities On the income statement, in SG&A (Selling, General and Administrative Expenses)