20% D Thu 1 03 Quiz Help Save & Exit On July 1 Plum Co. paid $7,500 cash for man

Question

20% D Thu 1 03 Quiz Help Save & Exit On July 1 Plum Co. paid $7,500 cash for management services to be performed over a two-year period Plum folows a policy of recording all prepaid expenses to asset accounts at the time of cash payment.On July 1 Plum should recoed Multiple Choice A credit to a prepaid expense and a debit so Cosh for $7.500 A delbit to Cash for $7,500 and a credit to an expense for $7,500 A debit to an expense and credit to Cash for $7.500 Adetit to a Pepaid expense and acred, to Canto SHO Prev 7Next 2 3 5 8 WER

Explanation / Answer

ANSWER - Debit to a prepaid expenses and a credit to cash for $ 7500 .

PARTICULARS AMOUNT Prepaid Expense Account ( debit) $ 7500         Cash (Credit) $ 7500     

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