In Naranjo Company’s December 31 trial balance, a debit balance of $18,000 is found in the Prepaid Rent account. A payment of $18,000 for prepayment of six months’ rent was made on September 1. Which of the following would be used to adjust the Prepaid Rent account on December 31?
a. Debit Rent Expense for $18,000.
b. Debit Prepaid Rent for $18,000.
c. Debit Rent Expense for $12,000.
d. Debit Prepaid Rent for $12,000.