In the case of a deferred expense,the adjusting entry required at the end of a period will consist of a debit to the Prepaid Expense account.Assume the deferred expense was initially recorded as an asset.

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The adjusting entry for a deferred expense typically involves a debit to an expense account (reflecting the expense now incurred) and a credit to the Prepaid Expense account (reducing the asset as it is used up).

In the Case of a Deferred Expense,the Adjusting Entry Required