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The balance in the prepaid rent account before adjustment at the end of the year is $10560 and represents three months' rent paid on December 1 . The adlusting entry required on December 31 is debit Prepaid Rent, $3520; credit Rent Expense $3520. debit Rent Expense, $10560;redit Prepald Rent, $10560. debit Prepaid Rent, \$7040; credit Rent Expense, \$7040. debit Rent Expense, \$3520; credit Prepaid Rent, \$3520