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Bronson Apparel Inc. operates a retail store and must determine the proper December 31, 2016, year-end accrual for the following expenses: The store lease calls for fixed rent of $1,000 per month, payable at the beginning of the month, and additional rent equal to 6% of net sales over $200,000 per calendar year, payable on January 31 of the following year. Net sales for 2016 are $800,000. Bronson has personal property subject to a city property tax. The city's fiscal year runs from July 1 to June 30, and the tax is payable on June 30. Bronson estimates that its personal property tax will amount to $6,000 for the city's fiscal year ending June 30, 2017. In its December 31, 2016, balance sheet, Bronson should report accrued expenses of:
Answers: 2
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Bronson Apparel Inc. operates a retail store and must determine the proper December 31, 2016, year-e...
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