Question 5 Homework - Answered Your company used $400 of electricity during your first month in business. The Electric Company sent you a bill at the end of the first month, but payment was not due until the 10th of month 2, so you did not pay the bill until month 2. Which of the following is true? O A You record the $400 expense when you pay it in month 2 and do nothing in month 1. O B You record the $400 expers and reduce assets in month 1, even though it will not be paid until month 2 O C You record the $400 expense and increase liabilities in month 1. You increase both assets and liabilities by $400 in month 1. These will both be reduced in month 2 when you make the payment