Panda Corporation paid cash of $120,000 on June 1, 2017 for one year's rent in advance and recorded the transaction with a debit to Prepaid Rent. The December 31, 2017 adjusting entry is ________._____.
1) debit Prepaid Rent and credit Rent Expense, $70,000.
2) debit Prepaid Rent and credit Rent Expense, $50,000.
3) debit Rent Expense and credit Prepaid Rent, $70,000.
4) debit Prepaid Rent and credit Cash, $50,000.