Rag Ltd has received a total of 7,800 from a customer for the annual rent for a retail unit in their mini shopping complex. This payment is for the following year.

What is the correct journal to enter the prepayment adjustment required at the year end?

DEBIT (Rent income, Accrued income, Rent expense, Petty cash, Deferred income, Bank, Prepaid expenses) 7,800

CREDIT (Rent income, Accrued income, Rent expense, Petty cash, Deferred income, Bank, Prepaid expenses) 7,800