On July 1 of the current calendar year, Plum Company paid $8.500 cash for management services to be performed over a two-year period beginning July 1. The adjusting entry on December 31 of the current year for Plum would include: Multiple Choice A debit to a prepaid expense and a credit to Cash for $6,375 A debit to an expense and a credit to a prepaid expense for $6,375. A debit to a prepaid expense and a credit to an expense for $2,125 A credit to a liability and a debit to a prepaid expense for $2.125. A debit to an expense and a credit to a prepaid expense for $2,125