[Tammijones]

As prepaid expenses expire with time, the correct adjusting entry will be a??
- debit to an asset account and a crefid to an expense account
- debit to an expense account and a crefid to an asset account
- debit to an asset account and a credit to an asset account - I know that's wrong
- debit to an expense account and a credit to an expense account- I think that's wrong too

[AdamUTsel]

Second answer, as you reduce your prepaid, you recognize the expense.

Dr. Expense
Cr. Prepaid asset