Swift Company paid $18,650 in advance for six months of rent. What journal entry will Swift prepare to record this transaction?

A. Debit Cash and credit Prepaid Rent for $18,650.
B. Debit Cash and credit Deferred Rent for $18,650.
C. Debit Rent Expense and credit Cash for $18,650.
D. Debit Prepaid Rent and credit Cash for $18,650.


Answer: D

Business

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