On June 30, 2009, Apricot Co. paid $7,500 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31, 2009 for Apricot would include: Select one: a. A debit to an expense for $5,625. b. A debit to a prepaid expense for $5,625. c. A debit to an expense for $1,875. d. A debit to a prepaid expense for $1,875. e. A credit to a liability for $1,875.why