Multiple Choice
During the current accounting period, Bentley Company paid $1,000 for advertising services in advance of receiving them. Prepaid Advertising was debited and Cash was credited for $1,000. At the end of the accounting period, three-fourths of the services paid for had yet to be received.
The proper adjusting entry is:
A) Prepaid Advertising 750
Advertising Expense 750
B) Advertising Expense 250
Prepaid Advertising 250
C) Prepaid Advertising 250
Advertising Expense 250
D) Advertising Expense 500
Prepaid Advertising 500
E) None of the above
Correct Answer:

Verified
Correct Answer:
Verified
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