Red Company purchased $900 of Prepaid Advertising on September 1, 20X1. The advertising will run for the next three months. What adjusting entry should be recorded on September 30, 20X1 to properly account for this advertising?

Multiple Choice

Debit Prepaid Advertising for $300, credit Advertising Expense for $300

Debit Advertising Expense for $300, credit Cash for $300

Debit Advertising Expense for $300, credit Prepaid Advertising for $300

Debit Cash for $300, credit Advertising Expense for $300