Question
The following selected accounts are taken from the books of RST Trading on April 30 before adjustment. RST has a monthly accounting period: Accounts ReceivableP5,000BuildingP50,000
The following selected accounts are taken from the books of RST Trading on April 30 before adjustment. RST has a monthly accounting period:
Accounts ReceivableP5,000BuildingP50,000
Sales75,000Service Income10,000
Prepaid Rent6,000Salaries Expense20,000
Adjustment data on April 30:
a)2 % of sales is estimated to be uncollectible.
b)Rent expired, P2,000.
c)Salaries unpaid, P 1,500.
d)Building will be depreciated at 20% per annum, with useful lie of 10 years.
e)Income unearned , P10,000.
The entry to adjust rent is
Select one:
a. Rent ExpenseP2,000
Prepaid RentP2,000
b. Rent ExpenseP4,000
Prepaid RentP4,000
c. Prepaid RentP2,000
Rent ExpenseP2,000
d. Prepaid RentP 2,000
CashP2,000
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