The adjusting entry to record the amount of prepaid rent used during the period requires a (debit/credit) to rent expense and a (debit/credit) to prepaid rent.

The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000 and represents three month’s rent paid on 1 December. The adjusting entry required on 31 December is:Group of answer choicesDebit Prepaid rent, $4,000; Credit Rent expense $4,000.Debit Prepaid rent, $8,000; Credit Rent expense, $8,000.Debit Rent expense, $12,000; Credit Prepaid rent, $12,000.Debit Rent expense, $4,000; Credit Prepaid rent, $4,000.

1. Prepaid Rent Expense: This is an account in which businesses record payments for rent that will take place in the future. A prepaid rent expense is considered an asset for the business. When the rent is paid, it is initially recorded as a debit to the prepaid rents account. As the rent expense is gradually incurred over time, an adjusting entry is made to debit rent expense and credit prepaid rents. 2. Unearned Revenue: This is money received by a business for a product or service that it has yet to deliver. Unearned revenue is considered a liability for the business. When the money is initially received, it is recorded as a credit to the unearned revenues account. As the business delivers the product or service over time, an adjusting entry is made to debit unearned revenues and credit revenues. 3. Accrued Revenue: This is revenue that has been earned by a business for a product or service that it has delivered, but for which it has not yet received payment. Accrued revenue is considered an asset for the business. When the revenue is earned, it is recorded as a debit to the accrued revenues account. When the business eventually receives the payment, an adjusting entry is made to debit cash and credit accrued revenues. 4. Accrued Expense: This is an expense that a business has incurred, but for which it has not yet paid. Accrued expenses are considered liabilities for the business. When the expense is incurred, it is recorded as a debit to the relevant expense account and a credit to accrued expenses. When the business eventually pays the expense, an adjusting entry is made to debit accrued expenses and credit cash. Give examples

Explain what is prepaid rent expense, unearned revenue, accrued revenue and accrued expense and whether they're debit or credit on the general journal

NOT recording the Prepaid Rent Expense used causes: aassets to be too low bexpenses to be too low crevenue to be too high dliabilities to be too hig

The landlord waived the first month's rent in December 2023, but asked the rent for January and February 2024 totalling $13,000 to be paid in advance. Speedy Limited paid the $13,000 in cash to the landlord and recorded it as a prepayment. what is debit ? and what is credit ? how to journal?