On July 1 the Wells Athletics paid $15,000 to Fortune Realty for 10 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 the Sam Athletics is: 1) debit Prepaid Rent, $2,500; credit Rent Expense, $2,500. 2) debit Rent Expense, $1,500; credit Prepaid Rent, $1,500 3) debit Rent Expense, $2,500; credit Prepaid Rent, $2,500. 4) debit Rent Expense, $15,000; credit Prepaid Rent, $2,500