What adjustment should be made to record expired advertising on the firm?

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should expensed used. is, twelve-month contract costing $5,400 should expensed on twelve month period. that's $450 per month.

each month credit of $450 made prepaid advertising account , debit of $450 made advertising expense account. @ end of contract period, there no remaining prepaid advertising balance related contract.

on decemeber 1, 2007, firm signed contract local radio station advertising extend on one-year period. firm paid $5,400 in advance , debited amount prepaid advertising.


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