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xxxxxxxx
Dec 15, 2009, 06:12 AM
Is this entry possible:
Accounts Receivable xxx
Prepaid Rent xxx

hamzashakaa
Dec 15, 2009, 08:15 AM
No its not because when you credit the prepaid rent account you should debit rent expense account.
The entry at the beginning should be
Debit Prepaid rent
Credit Bank

Then at each period or month you should close a portion of the prepaid rent account to rent expense account