Rent Expense accumulates the cost of rent. The business has now had more rent cost, not less. Another Question Go to Table of Contents 8a. Increase expenses with a debit. Another Question Go to Table of Contents 8b.
Expenses get a debit.
Another Question Go to Table of Contents 9a. Prepaid Insurance is an asset. The business purchased three years' worth of insurance to use in the future. Another Question Go to Table of Contents 9b. Prepaid Insurance is an asset.