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    xxxxxxxx's Avatar
    xxxxxxxx Posts: 1, Reputation: 1
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    #1

    Dec 15, 2009, 06:12 AM
    Accounts receivable debit prepaid rent credit
    Is this entry possible:
    Accounts Receivable xxx
    Prepaid Rent xxx
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
    Junior Member
    		  
    #2

    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
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