An adjusting entry to record the expired portion of a prepaid expense that was originally debited to a prepaid expense account always includes

Question

Quizplus · Accepted Answer

When a prepaid expense is adjusted for the portion that has been used up or expired, the entry includes a debit to an expense account and a credit to a prepaid expense account. This is because the prepaid expense account represents an asset that has been consumed or used up over time, and needs to be recognized as an expense in the income statement. Therefore, options A and B are incorrect, and option D is also incorrect as it suggests a credit to an expense account, which is not accurate.

An Adjusting Entry to Record the Expired Portion of a Prepaid