Your Best Advisors, a Service Company, Uses Reversing Entries $$\begin{array} { | c | r | r | } \hline \text { Utilities Expense } & 900 & \\\hline \text { Accounts Payable } & & 900 \\\hline\end{array}$$

Multiple Choice

Your Best Advisors, a service company, uses reversing entries. On March 31, 2014, they prepared the following adjusting entry to accrue Utilities Expense: $$\begin{array} { | c | r | r | } \hline \text { Utilities Expense } & 900 & \\\hline \text { Accounts Payable } & & 900 \\\hline\end{array}$$ Which of the following entries is the correct reversing entry to be prepared on April 1, 2014?

A) $$\begin{array} { | c | r | r | } \hline \text { Accounts Payable } & 900 & \\\hline \text { Utilities Expense } & & 900 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Utilities Expense } & 900 & \\\hline \text { Income Summary } & & 900 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 900 & \\\hline \text { Utilities Expense } & & 900 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Utilities Expense } & 900 & \\\hline \text { Accounts Receivable } & & 900 \\\hline\end{array}$$