The balance in the prepaid rent account before adjustment at the end of the year is $10080 and represents three months rent paid on December 1. The adjusting entry required on December 31 is: debit Prepaid Rent, $6720; credit Rent Expense, $6720. debit Rent Expense, $10080; credit Prepaid Rent, $10080. debit Rent Expense, $3360; credit Prepaid Rent, $3360. debit Prepaid Rent, $3360: credit Rent Expense $3360.