On July 1 of the current calendar year, Plurn Co. paid $9,100 cash for management services to be performed over a two year period beginning July 1. Plum 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 Plum would include: Multiple Choice A debit to an expense and a credit to a prepaid expense for $2,275. A credit to a liability and a debit to a prepaid expense for $2,275 A debit to an expense and a credit to a prepaid expense for $6,825. A debit to a prepaid expense and a credit to Cash for $6,825