On June 1, the company paid $1,200 in advance for 12 months of rent, with the rental period beginning on June 1. This $1,200 was recorded as Rent Expense. [Yes, they did it wrong, but we have to work with what they did.] As of the end of the year, no entry has yet been made to adjust the amount initially (incorrectly) recorded. Which ONE of the following will be included in the ADJUSTING ENTRY necessary on December 31? DEBIT to PREPAID RENT for $700 DEBIT to RENT EXPENSE for $500 DEBIT to CASH for $700 DEBIT to PREPAID RENT for $500 CREDIT to PREPAID RENT for $500 DEBIT to RENT EXPENSE for $700