On December 1 your company opens for business and leases space in a building for $1,000 per month and pays 3 months' rent in advance. On Dec. 31 the balance in rent expense is $3,000. On the basis of this information you may conclude that the advance payment for rent...

a. was recorded in prepaid rent which must now be credited for $1,000

b. was recorded in rent expense which must now be credited for $2,000

c. was recorded in prepaid rent which must now be debited for $1,000

d. was recorded in rent expense which must now be debited for $2,000