Which of the following entries records the payment of rent for the current month?
A) Cash, debit; Rent Expense, credit
B) Rent Expense, debit; Cash, credit
C) Rent Expense, debit; Accounts Receivable, credit
D) Accounts Payable, debit; Rent Expense, credit

Question

Quizplus · Accepted Answer

Rent Expense should be debited because it is an expense account and decreases the owner's equity. Cash should be credited because it is an asset account and decreases as it is being paid out. So, option B is the correct one. Option A and D are incorrect because accounts payable is a liability account, and it is not necessary to credit it when recording the payment of rent. Option C is incorrect because accounts receivable is an asset account, and it does not relate to rent payment.

Which of the Following Entries Records the Payment of Rent