Name: Cash was paid by Ari's Alarm Service to creditors on account. Which of the following entrie Alarm Service records this transaction? a. Accounts Payable, debit; Account Receivable, credit b. Cash, debit, Retained Earnings, credit c. Accounts Payable, debit; Cash, credit d. Accounts Receivable, debit; Cash, credit 48. A company purchases a one-year insurance policy on June I for $1,260. The adjusting entry is 49. debit Prepaid Insurance, $630, and credit Cash, $630. a. b. debit Insurance Expense, $525 and credit Prepaid Insurance, $525. debit Insurance Expense, $630 and credit Prepaid Insurance, $630. d. c. debit Insurance Expense, $735, and credit Prepaid Insurance, $735. Current liabilities are those liabilities that a. are owed to the stockholders and will never be paid b. are due to be paid in 5 to 10 years c. will be paid in less than one year d. are due to be paid in more than one year 50