Answered

IDNLearn.com provides a reliable platform for finding accurate and timely answers. Our platform provides prompt, accurate answers from experts ready to assist you with any question you may have.

On July 1 Plum Company paid $7,500 cash for management services to be performed over a two-year period. On July 1, Plum should record:

Sagot :

Parrainidn

Based on the cost of the management service, Plum Company on July 1 should record A debit to a prepaid expense and a credit to cash for $7,500.

What should Plum record?

The entire amount of $7,500 is being paid for a service that has not yet happened so they will go to the Prepaid expense account. As this is an expense, it is debited when it is increased.

Cash should then be credited by the same amount to show that it is reducing.

Find out more on prepaid expenses at https://brainly.com/question/14806222.

We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Your search for solutions ends here at IDNLearn.com. Thank you for visiting, and come back soon for more helpful information.