The balance in the prepaid rent account before adjustment at the end of the year is $12,000 and represents three months rent paid on December 1. The adjusting entry required on December 31 is: A) debit Prepaid Rent, $4,000; credit Rent Expense $4,000. B) debit Prepaid Rent, $8,000; credit Rent Expense, $8,000. C) debit Rent Expense, $12,000; credit Prepaid Rent, $12,000. D) debit Rent Expense, $4,000; credit Prepaid Rent, $4,000