5. Which of the following is the purpose of adjusting entries? A [ ] To record all payments and receipts in the accounts B [ ] To record prepayments and accrued expenses in accounts C [ ] To record expenses not recorded and expenses paid in advance D [ ] To record expenses incurred and revenue earned during accounting year Use the following information below to answer questions 6 to 7. On 1 October 2020, a business paid advertising expenses of K12,000 for four months ending 31 January 2021 and recorded in prepayment account. 6. Which of the following is the correct balance of prepayments account as at 31 December 2020? A [ ] K6,000 B [ ] K3,000 C [ ] K9,000 D [ ] K12,000 7. Which of the following indicates the advertising expenses recognized for the year ended 31 December 2020? A [ ] K6,000 B [ ] K3,000 C [ ] K9,000 D [ ] K12,000