On June $30,2014,$ Apricot Co$.$ paid $$5,000$ cash for management services to be performed over a two$-$year period. Apricot follows a policy of recording all prepaid expenses in asset accounts at the time of cash payment.

On June $30,2014$Apricot should record:

A debit to a prepaid expense for $$5,000.$

A debit to an expense for $$5,000.$

A credit to an expense for $$5,000.$

A credit to a prepaid expense for $$5,000.$