On November 1,Duane paid $24,000 in advance for a year's rent.The November 30 adjusting entry for rent expense should include a:

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Since Duane paid $24,000 in advance for a year's rent, the monthly rent expense is $2,000 ($24,000/12 months). Therefore, the adjusting entry for rent expense on November 30 should be a debit of $2,000 to Rent Expense (to recognize the portion of the prepaid rent that has been used up during the month) and a credit of $2,000 to Prepaid Rent (to reduce the balance of the prepaid rent to reflect the remaining months of the lease). Choices A and B are incorrect because they do not reflect the amount of rent expense for the month of November. Choice D is incorrect because it does not reflect the recognition of rent expense for the month of November.

On November 1,Duane Paid $24,000 in Advance for a Year's