Question 27 Which of the following is a correct adjusting entry for prepayments under Expense Method? Debit - Liability account ; Credit - Revenue account Debit - Expense account ; Credit - Prepaid Expense account Debit - Prepaid Expense account ; Credit - Expense account D Debit - Revenue account ; Credit - Liability account Question 28 Which is an incorrect adjusting entry? Debit - Depreciation Expense and Credit - Accumulated Depreciation B Debit - Prepaid Insurance and Credit - Insurance Expense using the income statement approach (C) Debit - Interest Expense and Credit - Interest Payable D Debit - Rent Collected in Advance and Credit - Rent Revenue using the income statement approach