Help Save & EX Seved sino 5. On July 1 of the current calendar year, Olive Co. paid $8,900 cash for management services to be performed over a two-year period beginning July Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 of the current year for Olive would include: OLSA Multiple Choice A debit to a prepaid expense and a credit to an expense for $2.225 A debit to an expense and a credit to a prepaid expense for $6.675 A debit to an expense and credit to a prepaid expense for $2.225. Acredit to a liability and debt to a prepaid expense for $2,225 A debit to a prepaid expense and a credit to Cash for 56,675 0 Next