account type is debited in the adjusting entry when a prepaid expense was initially recorded as an expense?
A) A debit to an asset account
B) A debit to a deferred revenue account
C) A debit to an unearned expense account
D) A debit to a contra account

Question

Quizplus · Accepted Answer

When a prepaid expense is initially recorded as an expense, the adjusting entry requires a debit to an asset account to recognize the prepaid portion that has not yet been incurred as an expense. This corrects the initial entry and reflects the prepaid expense as an asset on the balance sheet.

Account Type Is Debited in the Adjusting Entry When a Prepaid