Question
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
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
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