The adjusting entry to account for the expiration of prepaid advertising consists of
A) a debit to Prepaid Advertising and a credit to Advertising Expense.
B) a debit to Advertising Expense and a credit to Accumulated Depreciation.
C) a debit to Prepaid Advertising and a credit to Accumulated Depreciation.
D) a debit to Advertising Expense and a credit to Prepaid Advertising.

Question

Quizplus · Accepted Answer

The adjusting entry to account for the expiration of prepaid advertising involves recording the amount of prepaid advertising that has been used up or expired as an expense. This is done by debiting Advertising Expense and crediting Prepaid Advertising. The correct entry is therefore a debit to Advertising Expense and a credit to Prepaid Advertising.

The Adjusting Entry to Account for the Expiration of Prepaid