1Assume that the weekly payroll of Hunter Hardware, Inc., is $1,000. December 31, end of the year, falls on Tuesday, and Hunter Hardware will pay its employees on Friday for the full week. The adjusting entry Hunter Hardware will make on Tuesday, December 31 (use five days as a full workweek) is a debit to--------- and a credit to ------- .

2. Assume you prepay Fun Facts Magazine for a package of seven magazines a month for six months. Which type of account should you have in your records?