On January $1,$ the Sleepy Monk Coffee Shop paid $$42,000$ for a full year of rent beginning on January $1.$ The rent payment was appropriately recorded in the Cash and Prepaid Rent accounts. If financial statements are prepared on January $31,$ the journal entry to record the adjustment would be:

Multiple Choice

Debit Rent Expense and credit Prepaid Rent for $$3,500.$

Debit Rent Expense and credit Prepaid Rent for $$42,000.$

Debit Prepaid Rent and credit Rent Expense for $$42,000.$

Debit Prepaid Rent and credit Rent Expense for $$3,500.$