A company pays \$3,600 for a 6-month advertising contract on February 1st. What is the monthly advertising expense, and what adjusting entry should be made on April 30th?

• A. Monthly expense: \$300; Debit Prepaid Advertising \$900, Credit Advertising Expense \$900
• B. Monthly expense: \$300; Debit Advertising Expense \$900, Credit Prepaid Advertising \$900
• C. Monthly expense: \$600; Debit Prepaid Advertising \$1,800, Credit Advertising Expense \$1,800
• D. Monthly expense: \$600; Debit Advertising Expense \$1,800, Credit Prepaid Advertising \$1,800

Answer: (D)