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

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

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