Sandy, the accountant for Plan For Your Life Pte. Ltd. recorded commission expense transaction as follows:

DRCommission expense$20,000

CRCash at bank$20,000

The commission expense covers 1 Nov 2019 to 31 March 2020

If the company's year-end is 30 October 2019, which of the following is the best adjusting entry to be passed on 30 October 2019?

Question 5 options:

1)

DRPrepaid commission expense$4,000

CRCommission expense$4,000

2)

DRPrepaid commission expense$8,000

CRCommission expense$8,000

3)

DRPrepaid commission expense$12,000

CRCommission expense$12,000

4)

DRPrepaid commission expense$20,000

CRCommission expense$20,000