ather than debiting an asset account, which of the following statements explains an alternate recording procedure to journalize prepaid expenses, such as prepaid rent or supplies. (Check all that apply.)
Any unused prepaids existing at end of period are transferred to asset accounts.
Record all prepaid expenses with credits to expense accounts
Rationale:
We want to debit expense accounts.
Record all prepaid expenses with credits to liability accounts.
Rationale:
The alternative is to debit expense accounts.
Record all prepaid expenses with debits to expense accounts.