On December 31, Carmack Company received a $215 utility bill for December that it will not pay until January 15. The adjusting entry needed on December 31 to accrue this expense is:

Debit Utilities Expense $215; credit Accounts Payable $215.

Debit Accounts Payable $215; credit Utilities Expense $215.

Debit Prepaid Utilities $215; credit Cash $215.

Debit Utilities Expense $215; credit Prepaid Utilities $215.

Debit Prepaid Utilities $215; credit Accounts Payable $215.