04 November 2024
Identify the Deferred Expense: Locate the deferred expense in your accounting records, such as prepaid rent etc. Determine the Adjustment Amount: Calculate the amount of the expense that has been used up or expired during the accounting period. Debit the Expense Account: Debit the expense account (e.g., Insurance Expense) for the adjustment amount. Credit the Deferred Expense Account: Credit the deferred expense account (e.g., Prepaid Rent or Prepaid Insurance) for the same amount.