What is the entry to record rent expense of $1,600?

• A. Debit Rent Revenue $1,600; Credit Cash $1,600
• B. Debit Rent Expense $1,600; Credit Cash $1,600
• C. Debit Rent Expense $1,600; Credit Accounts Payable $1,600
• D. Debit Rent Expense $1,600; Credit Cash $1,600

Answer: (C)

Rent expense is recorded by debiting the Rent Expense account. The credit shows how the obligation is settled. Since this entry reflects an amount that hasn’t been paid yet and is owed to the landlord, it creates a liability, so the credit goes to Accounts Payable. Therefore, the proper entry is Debit Rent Expense 1,600; Credit Accounts Payable 1,600. If the rent had been paid right away, the credit would be Cash instead of Accounts Payable. The option that debits Rent Revenue is incorrect because rent is an expense for the renter, not revenue.