Stancil Enterprises prepaid four months of office rent totaling $9,000 on October 1, 2017. Assuming Stancil records deferred expenses using the alternative treatment, what would be the adjusting entry recorded on December 31, 2017?
A) Debit Rent Expense and credit Prepaid Rent for $6,750
B) No entry is needed since Rent Expense was recorded on October 1, 2017
C) Debit Prepaid Rent and credit Rent Expense for $2,250
D) Debit Prepaid Rent and credit Rent Expense for $27,000
C
Business
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