On July 1, Tatsunoko Association paid $15,000 to Usada Construction Company for 4 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by Tatsunoko Association is (Required) 1. Debit Rent Expense, $15,000; Credit Prepaid Rent, $3,750. Debit Prepaid Rent, $3,750; Credit Rent Expense, $3,750. 3. Debit Rent Expense, $3,750; Credit Prepaid Rent, $3,750. 4. Debit Rent Expense, $15,000; Credit Prepaid Rent, $15,000.