you prepaid $12,000 for advertising that would run equally over the 6 months, January - June. How would the use of the advertising be recorded in your accounting system in May?

Debit Advertising Expense for $2,000 and Credit Cash for $2,000

Debit Prepaid Advertising for $2,000 and Credit Advertising Expense for $2,500

othing. You recorded the payment of advertising in January.

Debit Advertising Expense $2,000 and Credit Prepaid Advertising $2,000