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The Bookkeeper Recorded Prepaying Rent in the Amount of $1,200  Accounts receivable 900 Prepaid rent expense 900\begin{array} { | c | r | r | } \hline \text { Accounts receivable } & 900 & \\\hline \text { Prepaid rent expense } & & 900 \\\hline\end{array}

Question 71

Multiple Choice

The bookkeeper recorded prepaying rent in the amount of $1,200 incorrectly as $2,100. Which of the following journal entries will correct the ledger accounts if the business records prepaying expenses by debiting an asset account?


A)  Accounts receivable 900 Prepaid rent expense 900\begin{array} { | c | r | r | } \hline \text { Accounts receivable } & 900 & \\\hline \text { Prepaid rent expense } & & 900 \\\hline\end{array}
B)  Cash 900 Prepaid rent expense 900\begin{array} { | c | r | r | } \hline \text { Cash } & 900 & \\\hline \text { Prepaid rent expense } & & 900 \\\hline\end{array}
C)  Cash 900 Rent expense 900\begin{array} { | c | r | r | } \hline \text { Cash } & 900 & \\\hline \text { Rent expense } & & 900 \\\hline\end{array}
D)  Rent expense 900 Cash 900\begin{array} { | c | r | r | } \hline \text { Rent expense } & 900 & \\\hline \text { Cash } & & 900 \\\hline\end{array}

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