Response to the following problem:
The following expenses were incurred by a merchandising business during the year. In which expense section of the income statement should each be reported: (a) selling or (b) administrative?
1. Advertising expense.
2. Depreciation expense on office equipment.
3. Insurance expense on store equipment.
4. Office supplies used.
5. Rent expense on office building.
6. Salaries of office personnel.
7. Salary of sales manager.