Panda Corporation paid cash of $120,000 on October 1, 2017 for one year's rent in advance and recorded the transaction with a debit to Prepaid Rent. The December 31, 2017 adjusting entry is A debit Rent Expense and credit Prepaid Rent, $30,000 B debut Rent Expense and credit Prepaid Rent, $90,000 OC debit Prepaid Rent and credit Cash, 530,000 D.debit Prepaid Rent and credit Rent Expense, 590,000 OE debut Prepaid Rent and credit Rent Expense, 530,000 An overstatement of the beginning inventory results in . an understatement of net income. OB a need to adjust purchases oc an overstatement of net income. OD no effect on the period's net income