QUESTION 3 The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months rent paid on December 1. The adjusting entry required on December 31 is debit Rent Expense, $8,000; credit Prepaid Rent, $8,000 debit Prepaid Rent, $24,000; credit Rent Expense, $8,000 debit Rent Expense, $24,000; credit Prepaid Rent, $8,000 debit Prepaid Rent, $8,000; credit Rent Expense, $8,000