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Jan1 Prepaid Rent 3000 cash 3000 Adjusting entry Jan 31 Rent Expense 1000 Prepaid Rent 1000 How are of the account affected the adjustment (understated

Jan1 Prepaid Rent 3000

cash 3000

Adjusting entry

Jan 31 Rent Expense 1000

Prepaid Rent 1000

How are of the account affected the adjustment (understated or overstated) and the impact of the adjustment on the financial statement

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