Williams Enterprises prepaid eight months of office rent totaling $9,000 on October 1, 2019. Assuming Williams records deferred expenses using the alternative treatment, what would be the entry on October 1, 2019?

Question

Quizplus · Accepted Answer

Under the alternative treatment for deferred expenses, the entire amount is initially recorded as an expense. Therefore, Rent Expense is debited and Cash is credited for the full amount of $9,000.

Williams Enterprises Prepaid Eight Months of Office Rent Totaling $9,000