Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 19 - No. 8)
When a company pays rent, what is the correct journal entry?
Debit Rent Expense, Credit Cash
Debit Cash, Credit Rent Expense
Debit Rent Expense, Credit Accounts Payable
Debit Accounts Payable, Credit Rent Expense
Explanation
Paying rent increases the rent expense and decreases cash.
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