Exercise 3-2 (Static) Determining when to recognize expenses LO C1 For each of the following separate situations, determine the amount of expense each company should recognize in December (using accrual basis accounting). a. Chipotle has monthly wages expense of $3,200 that has been incurred but not paid as of December 31, b. United Airlines purchases a 24-month insurance policy for $48,000 on December 1 for immediate coverage. c. On December 15, Pfizer prepays $20,000 for hotel rooms for its annual sales meeting in January Expenses Situations a Wages expense incurred but not paid b. Purchases a 24-month insurance policy Prepays for hotel rooms for its annual sales meeting c