The Balance in the Prepaid Rent Account Before Adjustment at the End

Multiple Choice

The balance in the Prepaid Rent account before adjustment at the end of the year is $24000 which represents three months' rent paid on December 1. The adjusting entry required on December 31 is to

A) debit Rent Expense $8000; credit Prepaid Rent $8000.
B) debit Rent Expense $16000; credit Prepaid Rent $16000.
C) debit Prepaid Rent $8000; credit Rent Expense $8000.
D) debit Prepaid Rent $16000; credit Rent Expense $16000.