The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000 and represents three months' rent starting on November 1. The adjusting entry required on December 31 is Multiple Choice debit prepaid rent, $4,000, credit rent expense $4,000. debit prepaid rent, $8,000, credit rent expense. $8,000. debit rent expense, $12.000; credit prepaid rent, $12.000. debit rent expense, $8,000; credit prepaid rent, $8,000