In the case of a deferred expense,the adjusting entry required at the end of a period will consist of a credit to the Prepaid Expense account.Assume the deferred expense was initially recorded as an asset.

Question

Quizplus · Accepted Answer

In the case of a deferred expense, the adjusting entry required at the end of a period will consist of a credit to the Prepaid Expense account to reduce the asset balance and recognize the expense.

In the Case of a Deferred Expense,the Adjusting Entry Required