During the current accounting period, Battle Creek Company paid $4,000 for advertising services in advance of receiving them. Prepaid Advertising was debited and Cash was credited for $4,000. At the end of the accounting period, three-fourths of the services paid for had yet to be received.

The proper adjusting entry is:

Select one:

A.

Advertising Expense

1,000

Prepaid Advertising

1,000

B.

Advertising Expense

2,000

Prepaid Advertising

2,000

C.

Prepaid Advertising

1,000

Advertising Expense

1,000

D.

Prepaid Advertising

3,000

Advertising Expense

3,000