On July 15,Monk,Inc.received a $820 bill for advertising run in July.The bill will be paid in August.The entry to record in July includes a $820:
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 includes a debit to Advertising Expense (to increase this expense account)and a credit to Accounts Payable (to increase this liability account).