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Ambassador Hotels purchases one year of cleaning service on December 1 for $24,000

Author:
January 10th, 2018

Ambassador Hotels purchases one year of cleaning service on December 1 for $24,000 ($2,000 per month), deb-iting prepaid cleaning expense, On December 31, Ambassador would record the following year-end adjusting entry:Select one:a. Cleaning Expense (Debit) $22000 ; Prepaid Cleaning (Credit) $22000 Incorrectb. Cleaning Expense (Debit) $24000 ; Prepaid Cleaning (Credit) $24000c. Cleaning Expense (Debit) $2000 ; Prepaid Cleaning (Credit) $2000d. Prepaid Cleaning (Debit) $2000 ; Cleaning Expense (Credit) $2000e. No entry is required on December 31 because full cash payment was made on December 1 and the Cleaning does not expire until the following November 30

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