During the current accounting period, Mulholland Company paid $1,000 for advertising services in advance of receiving them. Prepaid Advertising was increased and Cash was decreased for $1,000. At the end of the accounting period, three-fourths of the services paid for had been received.
The proper adjusting entry is:

Question

Quizplus · Accepted Answer

The Answer of During the current accounting period, Mulholland Company paid $1,000 for advertising services in advance of receiving them. Prepaid Advertising was increased and Cash was decreased for $1,000. At the end of the accounting period, three-fourths of the services paid for had been received.
The proper adjusting entry is:

During the Current Accounting Period, Mulholland Company Paid $1,000 for Advertising