On May 29,Lox,Stock & Bagel,Inc.received a $100 bill for advertising run in May.The bill will be paid in June.The entry to record in May includes a $100:
A) debit to Prepaid Advertising.
B) credit to Prepaid Advertising.
C) credit to Accounts Payable.
D) credit to Cash.

Question

Quizplus · Accepted Answer

The entry to record the advertising expense in May would include a credit to Accounts Payable, as the bill is an obligation to be paid in the future.