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What is the accounting rule for Rent payable? Does it have credit or debit balance?

Sagot :

Answer:

credit

Explanation:

Rent expense (and any other expense) will reduce a company's owner's equity (or stockholders' equity). Owner's equity which is on the right side of the accounting equation is expected to have a credit balance. Therefore, to reduce the credit balance, the expense accounts will require debit entries.

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