Question

Property Pros LLC pays Jiffy Painting Co $2,000 in December for painting services to be performed next month. P

Answer 1

Based on the fact that Property Pros LLC pays Jiffy Painting Co for painting services that are not yet done, the other account would be Prepaid Services.

What account should Property Pros LLC debit?

When using the accrual basis of accounting, costs are only recorded when they are incurred or rather when the service associated to the cost has been received.

For instance, if you pay for the subscription to a magazine for a year, it would count as prepaid services because you have no yet receive the magazines.

Only when you receive all the magazines will you then remove it as a prepaid service.

Property Pros LLC has not received the painting service so this will be debited to the Prepaid Services account as an asset to represent that Jiffy Painting Co. owes them for services.

Find out more on prepaid services at brainly.com/question/9270086

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